Market Overview

AUD/USD Forecast: Maintains Its Neutral Stance A Handful Of Pips Below The Year's High

AUD/USD Forecast: Maintains Its Neutral Stance A Handful Of Pips Below The Year's High

AUD/USD Current Price: 0.7365

  • The RBA left the cash rate at 0.1% as widely anticipated.
  • Australia will publish Q3 Gross Domestic Product, foreseen at 2.6% QoQ.
  • AUD/USD maintains its neutral stance a handful of pips below the year’s high.

The AUD/USD pair keeps trading in tight intraday ranges, posting a modest advance this Tuesday. The pair trades in the 0.7360 price zone, unable to retake the 0.7400 level amid Wall Street retracing a good bunch of its early gains. Earlier in the day, the RBA made a monetary policy decision, and as widely anticipated,  left its cash target rate unchanged at 0.1%. The Board also left the government bond purchasing program unchanged and repeated that it expects the recovery to be uneven, despite the economic comeback has been better than expected.

Australia will publish its Q3 Gross Domestic Product this Wednesday. The economy is expected to have grown 2.6% in the three months to September, after falling by 7% in the previous quarter. The annualized reading is foreseen at -4.4% from -6.3% in the previous month. Also, RBA’s Governor Philip Lowe is due to testify before the House of Representatives Standing Committee on Economics.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair is neutral in the short-term, as the 4-hour chart shows a directionless 20 SMA has contained the upside. Technical indicators lack directional strength and remain around their midlines. In the same time-frame, however, the pair is trading well above its 100 and 200 SMA, a sign that long-term sellers remain side-lined. The pair still needs to surpass the year high at 0.7413 to gain bullish potential.

Support levels: 0.7330 0.7290 0.7250

Resistance levels: 0.7370 0.7415 0.7450  

View Live Chart for the AUD/USD

Image sourced from Pixabay


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