After the crisis, wait for comments from Fed Chairman Powel

• The AUD / USD pair started Thursday's Asian trade around 0.7100.
• The pair reached its lowest level in two weeks, amid the neutral change in the RBA and its strong strength in USD.
• The upcoming speech by Fed Chairman Powell holds the key.

The Australian dollar recorded a new two-week low of 0.7100 against the US dollar at the start of Asian trading on Thursday, as the general strength of the US dollar and statements by RBA Governor Lowe continue to disappoint the increases. Fed Chairman Jerome Powell's speech will follow closely.

On Wednesday, the AUD / USD lost ground following the appearance of Philip Lowe, Governor of the Reserve Bank of Australia (RBA), in front of the Sydney National Press Club. Lowe looked at the increased risks of deteriorating the economy and brought down the rate cuts on the table.

Macquarie Bank badysts have noted that "Lowe has explicitly switched to neutral bias … aligns the Bank's thinking on its own central scenario regarding the cash flow outlook (ie, no change by the end of 2020 at least) ".

Downward pressure increased after the rise of the US dollar following US President Trump's (SOTU) state of the union address. Optimistic figures from the US monthly trade balance have further added to the strength of the dollar.

Trump appeared optimistic about the US-China trade deal in his SOTU speech, while the December US trade balance surpbaded the market consensus of -54.0 billion to -49.3 billion.

In the future, the speech of Federal Reserve Chairman Jerome Powell at a virtual badembly of teachers can give new impetus to traders of two. Investors are looking for clues to confirm whether the Fed still favors the "patience" position with respect to rate hike or not.

AUD / USD Technical Analysis

The break in the short-term rising support line signals the weakness of the AUD / USD pair which can go up to 0.7070. If the pair abstains from the resting point of 0.7070, the sellers 0.7015 and 0.6980 could attract the sellers' attention.

On the upside, 0.7160 acts as immediate resistance for the pair before highlighting the 0.7200 level. If prices rose above 0.7200, the 0.7260 and recent peak around 0.7295 could be bullish.