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AUD/USD: 0.7820 holding downside for now

FXStreet (Guatemala) - AUD/USD is currently trading 0.7822 with a high of 0.7914 and low of 0.7814.

AUD/USD has dropped again after a good performance and a minor recovery in Europe. CPI in the US sees the dollar off again coming at 0.7% vs 0/4% month on month while on the Private Capital Expenditure (Q4) data in Australia overnight, this read as -2.2 vs -1.9 expected and 0.6 previous. However, looking ahead, most of the focus on Aussie will be the RBA next week while markets speculate as to where the bank will cut again this time around.

Technically, the pair managed the 0.79 handle and on the upside, we have the area of downtrend at 0.7965 and the 7th Jan low at 0.8034. Karen Jones chief analyst at Commerzbank explained that a close above here is needed to alleviate downside pressure. If the market continues south, then Jones explained, "Below 0.7597 we have very little support apart from the 0.7335, 50% retracement of the move up from 2001."

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