AUD/USD has fallen very sharply recently following the “perfect storm” of a more dovish than expected RBA meeting and hawkish comments from Powell. The pair is now below the key 0.6628 December low. A weekly close above or below here holds the key for the Aussie, analysts at Credit Suisse report.

A reversal back above 0.6628 into the weekly close would reassert a rangebound outlook

“A clear weekly close below the key 0.6628 December low, combined with key breakouts in other USD crosses, would suggest a much more pronounced trending phase to the downside, with next supports seen at 0.6548, then 0.6386 and possibly even the 0.6170 2022 low as a stretch objective.”

“In contrast, a reversal back above 0.6628 into the weekly close on a payrolls miss would reassert a rangebound outlook.”