Market Overview

AUD/USD Forecast: Neutral In The Short-Term

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AUD/USD Forecast: Neutral In The Short-Term

AUD/USD Current Price: 0.5906

  • Australian services output plunged, manufacturing activity held into expansion territory.
  • Gold soared amid broad dollar’s weakness and despite ruling risk appetite.
  • AUD/USD neutral in the short-term, struggling to extend gains beyond Friday’s high.


The Australian dollar advanced against its American rival to 0.5975, its highest for this week, with the pair ending the day around 0.5900. Data coming from the country were mixed, as the Commonwealth Bank Services PMI plunged to 39.8 in March according to preliminary estimates, although the manufacturing index for the same period beat expectations with 50.1. PM Scott Morrison announced that the government is extending restrictions on social movements, adding to the world’s social-distancing stance to contain the spread of COVID-19.

Still, the robust surge in equities was what backed the pair, alongside gold prices, which also rallied on the dollar’s broad weakness. Spot gold traded as high as $1,631 a troy ounce, ending the day around 1,622. The Australian macroeconomic calendar will remain empty this Wednesday.

AUD/USD short-term technical outlook

The AUD/USD pair heads into the Asian session with a neutral-to-bullish stance according to intraday charts, as the pair has been stuck around the current level pretty much since London’s opening. The 4-hour chart shows that the price is above a mild-bullish 20 SMA, while the larger moving averages maintain their bearish slopes far above the current level. The Momentum indicator bounced just modestly from its mid-line, while the RSI remains directionless at around 52.

Support levels: 0.5850 0.5810 0.5770

Resistance levels: 0.5930 0.5975 0.6000

Image sourced by Pixabay

 

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