Market Overview

AUD/USD Forecast: Holds On To Most Of Its Daily Gains, Should Keep Rallying In Asia

AUD/USD Forecast: Holds On To Most Of Its Daily Gains, Should Keep Rallying In Asia

AUD/USD Current Price: 0.7275

  • Australian September Trade Balance posted a surplus of 5630 M.
  • Gold and equities soared, providing support to the commodity-linked currency.
  • AUD/USD holds on to most of its daily gains, should keep rallying in Asia.

The Australian dollar kept rallying against its American rival, with the pair rallying past October monthly high and reached 0.7288, its highest since last September. Substantial gains in Wall Street and the broad dollar’s sell-off kept pushing the pair higher throughout the day, further underpinned by Fed’s monetary policy announcement.

Australia published the September Trade Balance, which posted a surplus of 5630M in September, although the August surplus was downwardly revised to 2618M. Imports declined by 5.9% in the month, while exports increased by 3.9%. Early on Friday, the Reserve Bank of Australia will release its Monetary Policy Statement.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair holds on to intraday gains, bullish despite overbought in the near term. The latest advance has left the pair over 100 pips above a bullish 20 SMA, which has crossed above the larger ones almost vertically. The RSI indicator maintains its bullish slope at 75, while the Momentum indicator resumed its advance after a modest downward corrective movement. Should the pair advance beyond 0.7300, chances are of a test of the year high at 0.7413 in the following sessions. Bullish pressure may ease on a slide below 0.7240, the immediate support.

Support levels: 0.7240 0.7200 0.7170

Resistance levels: 0.7300 0.7345 0.7390

View Live Chart for the AUD/USD

Image sourced from Pixabay


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