We’re not at the close yet but today’s reversal in AUD/USD should give the bulls pause.
On Wednesday, this pair looked like it was breaking above the December range to continue the retracement from the November decline but yesterday’s doji and today’s swift reversal lower is a warning sign of further potential declines. A close below the Wed low of 0.7200 would add to the bearish bent.
On the calendar next week we get Chinese retail sales, GDP and industrial production to kick things off but the highlight is Thursday’s Australian jobs report.
Note also that Shanghai is on high alert due to a handful of cases of omicron transmission.