AUD/USD Forecast: Has Room To Recover Beyond Its Recent Highs In The Near-Term

AUD/USD Current Price: 0.7758

• Australian trade surplus contracted to 5022 million in November, as exports fell.
• Wall Street’s positive performance limited the AUD/USD bearish potential.
• AUD/USD has room to recover beyond its recent highs in the near-term.

The AUD/USD pair pulled back from around 0.7800 to end Thursday in the 0.7750 price zone, pressured by the persistent greenback’s demand and mixed Australian data. The country published its November Trade Balance, which posted a surplus of 5022 million, worse than the 6200 million anticipated. Exports shrank from 4.4% in the previous month to 3%, while imports increased from 2% to 10%. Building Permits in the same month were up 2.6% MoM, slightly better than anticipated.

Gold remained depressed, while Wall Street advanced, limiting the downside for AUD/USD. The Australian macroeconomic calendar will remain empty this Friday.

AUD/USD Short-Term Technical Outlook

The latest decline seems corrective as the AUD/USD pair retains its bullish stance in the near-term. In the 4-hour chart, the pair has managed to hold above a bullish 20 SMA, which keeps advancing above the longer ones. Technical indicators are slowly resuming their advances within positive levels after correcting overbought conditions. Overall, the pair has room to extend its gains beyond its recent highs in the 0.7800 area.

Support levels: 0.7725 0.7670 0.7630

Resistance levels: 0.7770 0.7815 0.7850  

View Live Chart for the AUD/USD