Market Overview

AUD/USD Forecast: Neutral-To-Bullish In The Short-Term And Heading Towards 0.7063

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AUD/USD Forecast: Neutral-To-Bullish In The Short-Term And Heading Towards 0.7063

AUD/USD Current Price: 0.6973

  • The Reserve Bank of Australia is expected to keep the cash rate unchanged at 0.25%.
  • Soaring global equities underpinned the Aussie against its American rival.
  • AUD/USD neutral-to-bullish in the short-term and heading towards 0.7063.

The AUD/USD pair traded as high as 0.6987, finding support in an improved market’s mood that sent global equities higher. Also, Australian data published at the beginning of the day underpinned the Aussie, as the TD Securities Inflation report for May resulted at 0.6% MoM, better than the previous -1.2%. When compared to a year earlier, inflation picked up from 0.1% to 0.7% according to the same estimate.

During the upcoming Asian session, the Reserve Bank of Australia will have a monetary policy meeting. The central bank is widely anticipated to keep its current monetary policy unchanged, as policymakers have been cautiously optimistic over the economy’s performance within the pandemic context. The cash rate is at a record low of 0.25%.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair is poised to challenge its 2020 high at 0.7063, offering a short-term neutral-to bullish stance. The 4-hour chart shows that a bullish 20 SMA keeps leading the way higher below the current level, and widening the distance with the larger ones. Technical indicators in the mentioned time-frame remain within positive levels, although lacking directional strength.

Support levels: 0.6930 0.6895 0.6850  

Resistance levels: 0.6990 0.7015 0.7060

Image sourced from Pixabay

 

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