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AUD/USD Forecast: Accelerating Its Decline On US Trading Hours And Approaching 0.7050 Support

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AUD/USD Forecast: Accelerating Its Decline On US Trading Hours And Approaching 0.7050 Support

AUD/USD Current Price: 0.7063

  • The Reserve Bank of Australia will publish the minutes of its latest meeting.
  • Chinese data indicating economic growth provided support to the Australian currency.
  • AUD/USD is accelerating its decline on US trading hours and approaching 0.7050 support.

The AUD/USD pair hit a daily high of 0.7100 but trimmed intraday gains and trades around 0.7060 ahead of the Asian opening. The Australian currency found support at the beginning of the day on Chinese data, as the country’s Q3 GDP came in at 4.9%, below the 5.2% expected but better than the previous 3.2% Industrial Production and Retail Sales in the country improved by more than anticipated in September, indicating steady growth in the country. The pair fell during US trading hours, following Wall Street’s lead,  as US major indexes plunged on headlines indicating that no progress has been made in the US on a coronavirus aid package.

This Tuesday, the focus is on the Reserve Bank of Australia, as the central bank will publish the minutes of its latest meeting. The People Bank of China will also set rates this Tuesday.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair plunged to daily lows around 0.7060, where it trades at the time being. The 4-hour chart shows that the bearish case is still strong, as sellers rejected the early advance around a firmly bearish 20 SMA. This last keeps falling below the larger ones. Technical indicators in the mentioned time-frame turned lower, the Momentum around its midline, and the RSI at around 35, supporting another leg south in the near-term.

Support levels: 0.7050 0.7020 0.6980

Resistance levels: 0.7100 0.7130 0.7170

View Live Chart for the AUD/USD

Image sourced from Pixabay

 

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