We’re not at the close yet, but today’s reversal in AUD/USD should give the bulls a break.
On Wednesday, this pair appeared to break above the December range to continue the retracement from the November decline, but yesterday’s doji and today’s rapid downward reversal are a harbinger of potential further declines. A close below 0.7200 Wednesday low would add to the downtrend.
On next week’s calendar, we’ll have China’s retail sales, GDP and industrial production to kick things off, but the highlight is Thursday’s Australian jobs report.
Also note that Shanghai is on high alert due to a handful of omicron transmission cases.