AUD/USD Forecast: Holds On To Gains Near This Year's High

AUD/USD Current Price: 0.7557

• The RBA’s Minutes anticipated additional easing coming in the near-term.
• Australia will release the November Westpac Leading Index, previously at 0.12%.
• AUD/USD holds on to gains near this year’s high, could storm through 0.7600.

The AUD/USD pair suffered a setback at the beginning of the day, falling to 0.7506, as the Reserve Bank of Australian Minutes brought a surprise. Policymakers noted that “substantial policy support” would be required for a considerable period, somehow hinting at more QE coming in early 2021. Meanwhile, the American dollar got attention due to its safe-haven condition, advancing on mounting concerns regarding fresh lockdowns in the US and Europe.

Early Wednesday, Australia will publish the November Westpac Leading Index, previously at 0.12%. The country will also see the release of the December Commonwealth Bank PMIs. The services index was previously at 55.4, while the manufacturing index was at 54.9 in November. Later in the day, the country will release October HIA New Home Sales.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair bounced from the mentioned low to settle in the 0.7560 price zone, helped during US trading hours by Wall Street’s positive tone. The pair is technically bullish, as the 4-hour chart shows that a bullish 20 SMA leads the way higher, attracting buying interest. Technical indicators stand within positive levels, although lacking directional strength. The pair has room to extend its advance towards 0.7660 on a break above 0.7580, the immediate resistance level.

Support levels: 0.7510 0.7470 0.7425

Resistance levels: 0.7580 0.7620 0.7660

View Live Chart for the AUD/USD

Image sourced from Pixabay