AUD/USD Forecast: Neutral-To-Bullish, Needs To Extend Advance Beyond 0.7770

AUD/USD Current Price: 0.7731

• The Australian Westpac Consumer Index improved in March to 2.6%.
• The greenback remained on the back foot amid weaker yields, poor data.
• AUD/USD is neutral-to-bullish, needs to extend advance beyond 0.7770.

The AUD/USD pair trades around 0.7730 heading into the US close, marginally higher daily basis amid a weaker greenback. Still, the latter has pulled back modestly from its monthly highs,  and it’s unclear whether it could fall further. As it has been happening lately, it would depend on whether US Treasury yields extend their gains or not.

Australia published the March Westpac Consumer Confidence index, which printed at 2.6%, beating the expected 1.8%. Reserve Bank of Australia Governor Philip Lowe participated in a business summit but repeated well-known ideas. Among other things, he said that rates would remain low as long as wages remain depressed, regardless of the economy doing better than expected. On Thursday, Australia will publish Mach Consumer Inflation Expectations, foreseen at 3.5% from 3.7% in the previous month.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair peaked for the day at 0.7745, although a stronger static resistance level comes at 0.7770. In the 4-hour chart, the pair offers a neutral-to-bullish stance, as it´s trading above its 20 SMA but below the 100 and 200 SMAs, all of them directionless. Technical indicators hold within positive levels, although the momentum losses bullish strength while the RSI is flat at around 53.

Support levels: 0.7690 0.7650 0.7610  

Resistance levels: 0.7770 0.7810 0.7845

View Live Chart for the AUD/USD