AUD/USD stays below 0.6720 support as softer Aussie data supersedes unimpressive moves of RBA’s Lowe, PBOC

• AUD/USD takes offers to refresh intraday low, printing minor losses during two-day downtrend.
• RBA’s Lowe fails to inspire markets from central bank review, PBOC holds benchmark rate at 3.65% as expected.
• Australia’s NAB Business Confidence for Q1 plummets to -4 versus -1 prior.
• Market sentiment remains fragile amid rate hikes, geopolitical fears and weigh on Aussie pair.

AUD/USD holds lower grounds as sellers attack the 0.6700 round figure early Thursday, after breaking short-term key support the previous day. In doing so, the Aussie pair takes clues from downbeat Australian data and justifies the market’s risk-off mood while paying a little heed to the latest action from the People’s Bank of China and Reserve Bank of Australia (RBA) Governor Philip Lowe.

National Australia Bank’s (NAB) Business Confidence for the first quarter (Q1) of 2023 came in at -4 versus 2 expected and -1 prior.

Before that, the PBOC matched market forecasts of holding one-year and five-year Loan Prime Rates (LPRs) unchanged at 3.65% and 4.30% in that order.

It’s worth noting that Australian Treasurer Jim Chalmers and RBA Governor Lowe offered a fresh review of the RBA and signaled fewer numbers of meetings while allowing the Aussie central bank to ignore Treasury’s decision. The moves failed to trigger any major market reaction as traders are more interested in inflation and geopolitical headlines amid the broad risk-off mood.

While portraying the sentiment, S&P 500 Futures snap three-day winning streak at around 4,168 whereas the US 10-year and two-year bond coupons grind higher after refreshing the monthly top the previous day.

Moving on, the US Weekly Initial Jobless Claims, Philadelphia Fed Manufacturing Survey and Existing Home Sales will be important to watch for fresh impulse. However, major attention will be given to the risk catalysts for a clear guide.

Technical analysis

A clear downside break of an eight-day-old support line, now immediate resistance near 0.6720, keeps AUD/USD bears hopeful.