AUD/USD may be lower on the day following Cohn's resignation, but is still trading above key levels on the daily chart
It wasn't an easy week for aussie traders, as there were lots of potential "landmines" that could have triggered uncertainty in the currency.
There was Tuesday's flurry of data - current account balance, retail sales - and the RBA decision. Then today, we had RBA governor Lowe on the wires earlier as well as the Q4 GDP results.
Data points were not really positive and GDP results showed a slower growth than expected as well. Meanwhile, the RBA stood pat and maintained its message - with uncertainty still surrounding inflation and household consumption leaving the central bank unable to pin down a specific timeframe to when it wants to normalise monetary policy.
But in spite all of that, the aussie has been quite resilient. AUD/USD broke above 0.7800 yesterday as risk sentiment and headlines have been the dominant theme in trading this week. It's all about the trade rhetoric, and yesterday's news from North Korea also helped to ease fears on escalating geopolitical tensions as well.
And that is evident in today's trading as well as the aussie slipped on the back of Cohn's resignation earlier - which the market perceives as a potential signal that a trade war is likely coming.
It's a crucial day for AUD/USD, as buyers broke above the 100-day and 200-day MA yesterday and for now those levels are providing support for the pair. Stay above them, and bias remains bullish for the pair.
The market is looking awfully quiet right now as we await traders in Europe to come in. The economic calendar doesn't have any major data points today in European trading, so it will be all about sentiment and flow over the next few hours.
