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AUD/USD Forecast: Neutral-To-Bullish In The Near Term, Needs To Surpass 0.7770

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AUD/USD Forecast: Neutral-To-Bullish In The Near Term, Needs To Surpass 0.7770

AUD/USD Current Price: 0.7729

  • Australian January Westpac Consumer Confidence improved from -4.5% to 1.9%,
  • The dismal behavior of US equities prevented aussie from appreciating.
  • AUD/USD is neutral-to-bullish in the near term, needs to surpass 0.7770.

The AUD/USD pair spent Wednesday confined to a tight 30 pips’ range, ending the day unchanged around 0.7730. Bulls were unimpressed by Australian data, as January Westpac Consumer Confidence improved from -4.5% to 1.9%, much better than anticipated. The pair got trapped between the broad dollar’s weakness, and falling equities, which usually undermine aussie’s demand.

Meanwhile, gold prices saw some interesting intraday spikes driven by dollar’s demand or the absence of it but is ending the day little changed around $ 1,842 a troy ounce. Early on Thursday, Australia will publish February Consumer Inflation Expectations, foreseen unchanged from the previous reading at 3.4%.  

AUD/USD Short-Term Technical Outlook

The AUD/USD pair has lost its bullish strength, but chances of a steeper decline seem limited. In the 4-hour chart, the pair is trading above all of its moving averages, with the 20 SMA heading firmly higher above the longer ones. Technical indicators, however, retreated further from overbought readings, holding within positive levels. The pair may accelerate lower on a break below 0.7710, the immediate support level.

Support levels: 0.7710 0.7675 0.7640  

Resistance levels: 0.7770 0.7810 0.7845

View Live Chart for the AUD/USD

 

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Posted-In: FXStreetNews Forex Global Markets

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