FX.co ★ Technical review for AUD/USD: price remains down because of the COVID-19 outbreak in China

AUD/USD remains heavily affected by the recent COVID-19 outbreak in China. The situation could put further pressure on the local economy, as well as on the demand for Australian exports. The pair is also declining amid expectations of a sharp increase in Fed interest rates at the upcoming meeting in May.

Technical picture:

The quote is below the middle line of the Bollinger indicator, below SMA 5 and SMA 14 The relative strength index (RSI) is moving towards the oversold zone, while the stochastic indicator is already in that area.

Possible dynamics:

A consolidation below 0.7170 could provoke a deeper decline to 0.7065.