AUD/USD Forecast: Heading Into The Asian Opening And Heading Towards 0.7275

AUD/USD Current Price: 0.7230

• Australian Construction Work Done improved in Q2 but remained depressed at -0.7%.
• A modest uptick in Wall Street helped to keep the Aussie afloat.
• AUD/USD is mildly bullish, heading into the Asian opening and heading towards 0.7275.

Commodity-linked currencies were among the ones that benefited the most from the broad dollar’s weakness. The AUD/USD pair surged to 0.7239 and settled a handful of pips below the level.  A modest advance in US equities helped to keep the pair afloat, as well as Australian data released at the beginning of the day. According to the official report, Construction Work Done resulted at -0.7% in Q2, beating expectations of -5.8%, and improving from -1% in Q1. During the upcoming Asian session, the country will publish Q2 Private Capital Expenditure.

AUD/USD short-term technical outlook

The AUD/USD pair has an increased bullish potential, mainly considering that it´s trading near its yearly highs. Technical readings, however, fell short of confirming a bullish continuation. In the 4-hour chart, the pair has settled above all of its moving averages, with the 20 and 100 SMA still converging and without directional strength. Technical indicators hold within positive levels but turned lower ahead of the US close. Still, the pair has room to test its yearly high and even break above it during the upcoming sessions.

Support levels: 0.7195 0.7160 0.7120

Resistance levels: 0.7240 0.7275 0.7310

View Live Chart for the AUD/USD