Market Overview

AUD/USD Forecast: Holds On To Daily Gains And Could Continue Advancing In The Near-Term

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AUD/USD Forecast: Holds On To Daily Gains And Could Continue Advancing In The Near-Term

AUD/USD Current Price: 0.7153

  • Chinese data beat expectations, providing support to the Australian currency.
  • Risk-related sentiment seesawed throughout the day, ended on an up note.
  • AUD/USD holds on to daily gains and could continue advancing in the near-term.

Commodity-linked currencies were the best performers this Wednesday, with AUD/USD surging to the 0.7174, its highest in over a week. The pair fell to 0.7099 at the beginning of the day, undermined by risk aversion, to later recovery with the sentiment’s U-turn. Australian data released at the beginning of the day was discouraging, as Private Sector Credit remained flat in August, while Building Permits decreased 1.6% in the same month, both missing the market’s expectations.

Chinese data, on the other hand, was pretty encouraging as the September NBS Manufacturing PMI beat expectations, improving to 51.5 from 51 in the previous month. The Non-Manufacturing PMI for the same month came in at 55.9, better than anticipated and the previous 55.2. This Thursday, Australia will publish the AIG Performance of Manufacturing Index for September, and the Commonwealth Bank Manufacturing PMI for the same month.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair is trading a few pips below the mentioned high and could continue advancing amid the prevalent positive mood. The 4-hour chart shows that the pair keeps developing above a bullish 20 SMA, although the intraday advance stalled below a still bearish 100 SMA. Technical indicators, in the meantime, are retreating modestly but still near overbought levels. Overall, the risk remains skewed to the upside, with scope to extend its gains beyond 0.7250.

Support levels: 0.7100 0.7060 0.7015

Resistance levels: 0.7175 0.7210 0.7250

Image source from Pixabay

 

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