Market Overview

AUD/USD Forecast: Still At Risk Of Falling In The Near-Term

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AUD/USD Forecast: Still At Risk Of Falling In The Near-Term

AUD/USD Current Price: 0.7031

  • NAB’s Business Confidence improved to -10 in Q3 from -15 previously.
  • Wall Street’s modest advance helped AUD/USD to recover some ground.
  • AUD/USD is still at risk of falling in the near-term.

The AUD/USD pair fell to 0.7001, its lowest since late July, as risk aversion fueled demand for the greenback. Australia published at the beginning of the day Q3 NAB’s Business Confidence, which came in at -10 from -15. The country also published the Import Price Index for the same period, that came in worse than expected as it fell by 3.5% in the three months to September. Export prices declined by 5.1%.

Upbeat US data put a halt to equities’ collapse, with Wall Street posting intraday advances and helping the pair to recover to the current 0.7030 price zone. The Australian macroeconomic calendar will be light this Friday, as the country will only publish minor figures, September Private Sector Credit and the Q3 Producer Price Index.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair has corrected oversold conditions, but the risk remains skewed to the downside, according to intraday technical readings. The 4-hour chart shows that the pair is developing below all of its moving averages, with the 20 SMA accelerating south below the larger ones. Technical indicators have barely bounced from oversold readings, but lack strength enough to support a bullish continuation.

Support levels: 0.6990 0.6950 0.6910

Resistance levels: 0.7070 0.7110 0.7160

View Live Chart for the AUD/USD

Image sourced from Pixabay

 

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