AUD/USD analysis: Aussie nearing a bullish breakout point
|AUD/USD Current price: 0.7869
- Australian Retail Sales soared in November, up 1.2%.
- AUD/USD nearing October high, key resistance at 0.7896.
The Australian dollar is today among the strongest against the greenback, underpinned by a positive surprise from local retail sales, as sales surged 1.2% last November, the fastest pace in five years, amid Black Friday sales. The AUD/USD pair traded as high as 0.7885, its highest since October when it topped at 0.7896. Gold prices, holding near multi-month highs, add to the bullish case of the pair. The US will release today its PPI for December, and the usual weekly unemployment claims data, while later on the day it will release its monthly budget statement, and Fed's Dudley will offer a speech. But rather than watching the macroeconomic calendar, investors will keep an eye on equities and yields for direction.
In the meantime, the pair recovered its positive bias, although the momentum upward remains limited. In the 4 hours chart, the price has recovered above its 20 SMA that anyway continues lacking direction, the Momentum indicator barely bounces from its mid-line, still neutral, while the RSI consolidates around 59. Above the mentioned October high, the pair has scope to extend its rally with the market then eyeing the 0.8000 figure.
Support levels: 0.7830 0.7800 0.7770
Resistance levels: 0.7895 0.7920 0.7945
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