AUD/USD Forecast: Bullish As long As Above 0.6900

Key Points:

• Australian economic activity improved by more than anticipated in June.
• Gold prices surged to reach fresh multi-year highs, underpinning Aussie.
• AUD/USD holding on to intraday gains, but the bullish momentum is limited.

The AUD/USD pair extended its advance to 0.6974 in the past American session, stabilizing at the end of the day in the 0.6930 price zone. Growth-related data was behind the daily advance, with upbeat PMIs from all major economies, Australia included. The preliminary estimate of the Commonwealth Bank Manufacturing PMI surged to 49.8 in June from 49.2 in May, while the services index came in at 53.2 from 25.7. Another bullish factor for the pair was gold, as the bright metal surged to its highest since 2012 on the back of the broad dollar’s weakness.

Australia won’t release macroeconomic data this Wednesday, although the New Zealand Central Bank will announce its latest monetary policy decision, which in turn, could have an impact on the Aussie.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair retains its positive tone in the short-term, although the bullish momentum faded by the end of the day. In the 4-hour chart, it is developing above all of its moving averages, with the 20 and 100 SMA heading modestly higher a handful of pips below the current level. Technical indicators, in the meantime, eased from daily highs, currently approaching their midlines. As long as the pair holds above the 0.6900 level, however, chances of a steeper decline will be limited.

Support levels: 0.6900 0.6860 0.6820
Resistance levels: 0.6980 0.7015 0.7050