AUD/USD Forecast: Slightly Bullish, Stronger Momentum Seen Once Beyond 0.6515

AUD/USD Current Price: 0.6458

• The RBA left its monetary policy unchanged as expected.
• Australian Retail Sales is seen up by 8.2% in March.
• AUD/USD slightly bullish, stronger momentum seen once beyond 0.6515.

The AUD/USD pair is up heading into the Asian session, some 20 pips higher from where it left on Monday. The Reserve Bank of Australia had a monetary policy meeting, yet as expected, the monetary policy was left unchanged. Governor Lowe acknowledged the “economy is going through a very difficult period and there is considerable uncertainty about the outlook," although he added there’s room for a strong recovery if the economic activity returns.

The pair managed to advance on the back of rallying equities, partially offset by renewed dollar’s strength. Australia also released the April AIG Performance of Construction Index which plunged to 21.6 from 37.9 previously. This Wednesday, the country will publish March Retail Sales, foreseen at 8.2%.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair is within familiar levels, with a slightly positive short-term bias. In the 4-hour chart, technical indicators have entered positive territory, but lack strength enough to confirm additional gains ahead. Over the last few hours, the pair has held above a bearish 20 SMA, unable to move far away from it. The bullish potential, however, remains limited as long as it stays below the 0.6510 price zone.

Support levels: 0.6410 0.6375 0.6350

Resistance levels: 0.6480 0.6515 0.6560

Image sourced from Pixabay