AUD/USD picks up above 0.6550 with US housing and employment data on focus

• The Aussie has trimmed some losses on the back of a softer dollar but the broader bearish trend remains intact
• Australian data has shown mixed figures, the focus is now on US housing and jobless claims figures.
• AUD/USD is likely to meet resistance at 0.6545 and 0.6640.

The Australian Dollar is going through a mild recovery on Thursday, favored by a softer US Dollar. The pair has trimmed some losses, returning above 0.6550, although the broader trend remains negative.

Australian data has been mixed. The Consumer Inflation Expectations remained steady at 4.5% in January while the number of employed workers declined unexpectedly, suggesting that the labour market is losing steam.

Macroeconomic data from China released on Wednesday showed that the GDP grew at a 5.2% rate in 2023, below market expectations of a 5.3% growth. Beyond that, retail sales disappointed, reviving concerns about the sluggish post-COVID recovery and weighing on the Aussie as China is Australia's main trading partner.

From a wider perspective, the AUD/USD maintains the negative bias intact with the bearish cross in 4h SMAs adding weight to the pair. Aussie bulls are likely to find resistance at 0.6595 and 0.6640. On the downside, supports are 0.6520 and 0.6450.

Technical levels to watch