AUD/USD Forecast: Holding Near A Fresh Year High At 0.7290 And Could Break Above It

AUD/USD Current Price: 0.7260

• Australian data beat expectations but still showed a steep economic downturn.
• The solid performance of Wall Street provided support to the Aussie.
• AUD/USD is holding near a fresh year high at 0.7290 and could break above it.

The AUD/USD pair reached a fresh 2020 high of 0.7290, retreating afterwards yet ending the day with gains in the 0.7260 price zone. The rally was backed by Wall Street’s rally and persistent dollar’s weakness. Australia published only minor macroeconomic data this week, which had no effect on the local currency. Still, this Thursday the country released Q2 Private Capital Expenditure, which came in at -5.9% worse than the previous -4.1% but better than the -8.4% expected. The country won’t release macro figures this Friday.

AUD/USD short-term technical outlook

From a technical point of view, the AUD/USD pair seems poised to extend its advance, as the 4-hour chart shows that it keeps moving above its moving averages, with the 20 SMA gaining upward traction above the larger ones. Technical indicators, in the meantime, hold near their daily highs, the Momentum flat, yet the RSI is still advancing currently at around 65. Beyond the mentioned daily high, the pair has room to extend its advance 0.7373 the high set in December 2018. 

Support levels: 0.7195 0.7160 0.7120

Resistance levels: 0.7290 0.7330 0.7360

View Live Chart for the AUD/USD