AUD/USD Forecast: Holding On To Gains And Poised To Reach Fresh Multi-Month Highs

AUD/USD Current Price: 0.7235

• Gold soared to a new record high of  $2,069.72 a troy ounce, underpinning the Aussie.
• The Chinese Trade Balance is foreseen posting a surplus of $42 billion in July.
• AUD/USD holding on to gains and poised to reach fresh multi-month highs.

The AUD/USD pair is holding near its recent highs, and more relevantly, above the 0.7200 level, its best daily close since February 2019. The pair has spent most of the day in consolidative mode, getting boosted during US trading hours on the back of another round of dollar’s selling.  Gold prices continued to rally, with spot reaching a record high of $2,069.72 a troy ounce, a positive factor for the Aussie, alongside Wall Street’s positive tone.

 Early Friday, Australia will publish the AIG Performance of Services Index for July, previously at 41.5, while the RBA will release the statement of its latest monetary policy meeting. The Asian session will also bring the Chinese Trade Balance for July, expected with a surplus of $42B.

AUD/USD short-term technical outlook

The AUD/USD pair is bullish, pressuring the highs in the 0.7240 price zone. The 4-hour chart shows that the rally may continue during the upcoming sessions. The 20 SMA continues advancing while providing intraday support, now at around 0.7170. The Momentum indicator maintains its bullish strength well into positive territory, while the RSI indicator consolidates at around 62.

Support levels: 0.7200 0.7160 0.7115  

Resistance levels: 0.7240 0.7285 0.7320

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