Market Overview

AUD/USD Forecast: Holds On To Daily Gains Could Extend Its Rally Beyond 0.7210

Share:
AUD/USD Forecast: Holds On To Daily Gains Could Extend Its Rally Beyond 0.7210

AUD/USD Current Price: 0.7189

  • Australian AIG Performance of Manufacturing Index contracted to 46.7 in September.
  • August Retail sales in the country are foreseen at -4.2% as previously estimated.
  • AUD/USD  holds on to daily gains could extend its rally beyond 0.7210.

The AUD/USD pair reached a fresh weekly high of 0.7208, pulling back from the level during US trading hours to end the day with modest gains in the 0.7180 price zone. Australian data was pretty discouraging, as the AIG Performance of Manufacturing Index contracted to 46.7 in September from 49.3 in the previous month. The final version of the Commonwealth Bank Manufacturing PMI for the same month resulted in 55.4 from 55.5. The country will publish August Retail Sales foreseen at -4.2% as previously estimated.

AUD/USD Short-Term Technical Outlook

From a technical point of view, the AUD/USD pair retains its bullish bias despite easing from intraday highs. The 4-hour chart shows that it keeps developing above a bullish 20 SMA while selling interest rejected the advance around a flat 100 SMA. Technical indicators in the meantime, are retreating from overbought readings, but holding well above their midlines. The rally could extend on a break above 0.7210, now the immediate resistance level.

Support levels: 0.7140 0.7100 0.7060  

Resistance levels: 0.7210 0.7250 0.7290

View Live Chart for the AUD/USD

Image sourced from Pixabay

 

Related Articles

View Comments and Join the Discussion!

Posted-In: AUD/USD FXStreetNews Futures Global Markets