AUD/USD threading water at yearly lows ahead of US PCE on Thursday

• The AUD/USD is trading at yearly lows amid positive greenback sentiment. 
• The US Personal Consumption Expenditure (PCE) is scheduled on Thursday at 12:30 GMT. 

The AUD/USD is trading at around 0.7663 down 0.20% on Wednesday. The Aussie is under pressure as the US Dollar sentiment is positive across the board on Wednesday. A better-than-anticipated US Gross Domestic Product earlier in the session, easing tensions between the US and China over tariffs, the stabilization of stock markets which have momentarily halted their decline seen in the last weeks, quarter-end along with month-end profit-taking and bond yields rising all contribute to lifting the greenback. 

Coming up next in the US macroeconomic calendar is the Personal Consumption Expenditure (PCE) Price Index over the year to February expected at 1.6% while the month-on-month reading is expected to decelerate to 0.0% from 0.4% seen in January. It is worth noting that the PCE is the favorite inflation indicator of the Federal Reserve. 

Meanwhile, next Tuesday after the Easter break, the Reserve Bank of Australia is scheduled to release its interest rate decision as well as the meeting’s statement. According to analysts polled by Reuters, the RBA is expected to hold on rates until the end of the year.

AUD/USD weekly chart

The bears are targetting the 100-period simple moving average at 0.7630 very close to the 0.76 handle. If the 0.76 support is broken the pair should accelerate down to the 0.75 previous swing low. Resistance is seen at the 0.7780 level with the high of last week and the 200-period simple moving average.

AUD/USD daily chart 

The AUD/USD is trading close to yearly lows threatening to break below the 0.7650 figure. The AUD/USD is in a big bear bull flag since the start of 2018. The Aussie is supported by a descending trendline. However, the sentiment remains bearish and a break of the trendline could see the Aussie accelerate down toward the 0.75 level. Support is seen at 0.7650 low of the day, followed by the 0.76 and 0.75 figures. To the upside 0.77 previous supply/demand level and 0.7780 high of last week should provide resistance.