Market Overview

AUD/USD Forecast: Trading Above The 0.7100 Threshold But Lacks Bullish Momentum

AUD/USD Forecast: Trading Above The 0.7100 Threshold But Lacks Bullish Momentum

AUD/USD Current Price: 0.7122

  • Mixed Australian data barely affected the local currency with the focus on stimulus.
  • A modest Wall Street’s advance kept the pair afloat during US trading hours.
  • AUD/USD is trading above the 0.7100 threshold but lacks bullish momentum.

The AUD/USD pair changed course on Wednesday, trimming its weekly losses and finishing the day with substantial gains near a daily high of 0.7136. The pair was initially underpinned by optimism about a US stimulus package, which put the greenback in sell-off mode. The market ignored mixed Australian data, as the September Westpac Leading Index came in at 0.22%, down from 0.49% in the previous month, while Retail Sales fell by 15% in September, according to preliminary estimates.

During US trading hours, the pair further advanced as Wall Street managed to post modest intraday gains. During the upcoming Asian session, RBA’s Debelle is scheduled to speak, while the National Australian Bank will publish Q3 Business Confidence, previously at -15.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair is consolidating gains in the 0.7120 region. The 4-hour chart shows that the pair has regained ground, but further gains are not yet clear, as it managed to advance above its 20 SMA, but remains below the larger ones. Technical indicators crossed their midlines into positive levels, but are already turning lower, with the Momentum within neutral levels. A strong static resistance level comes at 0.7170, and a break above it would make the bullish case clearer.

Support levels: 0.7110 0.7065 0.7020

Resistance levels: 0.7135 0.7170 0.7210

View Live Chart for the AUD/USD

Image sourced from Pixabay


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