AUD/USD: last up is Baker Hughes oil rig count

By FXStreet AUD/USD is trying to hold onto the 0.71 handle, but profit taking at the end of the week leaves risks to the downside as we head towards the US close.

The data has been digested, there is very little left except oil is of course a risk Today we have the Baker Hughes oil rig count and that has the ability to move the commodity sector. Oil has been in recovery of the recent downside, where a low of $26.03 WTI was recorded this week. A recovery to $29.47 was made today WTI while spot trades $28.80 currently.

AUD/USD levels

Technically, Karen Jones, chief analyst at Commerzbank noted that AUD/USD has eroded the 0.7017 low charted in November, but needs to close back below here to reassert downside pressure. “A close back below the .7017 November low should be enough to trigger further weakness. Longer term the risks are on the downside and we target the 0.6774 2004 low. Nearby support at 0.6920 guards the 0.6828/29 recent lows.”

Meanwhile, spot is above the pivot and needs a close lower that 0.7080 targeting 0.7005 R1 and below the 20 dma at 0.7043 if the downside can be re-instigated for next week.
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Source:: FX Street