AUD/USD caught a strong down draft after hitting its highest in nearly a week, just short of the Feb.
21 peak, and Australian economic risks appear to be foreshadowing a deeper retreat.
The big downside surprise to Australian Q4 construction work reinforces views that growth is slowing.
It also bolsters views that the RBA's next rate move could be a cut, with Australian 3-month bank bill futures now pricing in 25 basis points of cuts into early 2020.
The range-low in U.S. yields have held again and rates are rising, leaving the greenback widely bid and widening Australian-U.S.
spreads, both of which helped AUD/USD push below the 55-DMA.
Upcoming data points may weigh on the pair.
Australian Q4 CAPEX and China's February NBS and Caixin PMIs could spark sharp moves in AUD/USD.
The PMI data should get most of the market's attention.
January's NBS PMI improved over December's, which suggested some stabilization in growth.
However, January Caixin continued the trend of deteriorating growth.
Should both results show the economy is contracting AUD/USD could test support near 0.7050/60 on concerns global growth is stumbling.
Upside data surprises could see bulls target the 200-DMA and January high.
chart: Click here