AUD/USD Forecast: Technically Bearish, Only Holding Amid Absent Demand For The Greenback

AUD/USD Current Price: 0.7064

• The RBA discussed reducing the targets for the cash rate and the 3-year yield towards zero.
• Wall Street’s comeback provided support to the pair during US trading hours.  
• AUD/USD is technically bearish, only holding amid absent demand for the greenback.

The Australian dollar fell on the back of a dovish Reserve Bank of Australia, with AUD/USD hitting a 4-week low of 0.7020. The RBA released the Minutes of its latest meeting, which showed that boar members have continued to consider how additional monetary easing could support jobs and even discussed the possibility of reducing the targets for the cash rate and the 3-year yield towards zero. On a positive note, members noted that the global economy is gradually recovering, although it will remain linked to coronavirus developments.

The pair later recovered from the mentioned low alongside US equities during US trading hours, trimming early losses and trading in the 0.7060 price zone. During the upcoming Asian session, the country will publish the September Westpac Leading Index, previously at 0.48%. It will also publish the preliminary estimate of September Retail Sales, previously at -4%.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair is technically bearish, as the 4-hour chart shows that the pair remained below all of its moving averages, with the 20 SMA still below the larger ones. Technical indicators have recovered from their intraday lows, but turned flat within negative levels, indicating limited buying interest, despite the broad dollar’s weakness.  

Support levels: 0.7020 0.6980 0.6940

Resistance levels: 0.7100 0.7130 0.7170

View Live Chart for the AUD/USD

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