AUD/USD analysis: Aussie saved by stocks, but still eminently bearish
|AUD/USD Current price: 0.7257
The AUD/USD recovered from a fresh 6-month low of 0.7222 to close the day marginally higher around 0.7260. At the beginning of the day, the Minutes of the latest RBA meeting gave the Aussie a mild boost, as the Central Bank hinted that it's content to leave rates steady at the time being, although it warned about the already "high levels" of household debt, as a consequence of lower interest rates boosting borrowing. A brief spike above 0.7300 was quickie reversed on dollar's strength, but as seems usually these days, investors rushed to take some profits out of the table ahead of the US close, with the Aussie also benefiting from a rally in US stocks. Despite closing in the green the pair has settle a lower low and a lower high daily basis, which maintains the risk towards the downside, making of this intraday bounce a mere correction. Short term, the 1 hour chart the price is a few pips above a still bearish 20 SSMA, whilst technical indicators have turned flat within neutral territory. In the 4 hours chart, the price remains well below a bearish 20 SMA around the 0.7290 mark, while technical indicators have corrected oversold conditions and head north, but still remain below their mid-lines, indicating limited buying interest around the pair.
Support: levels: 0.7210 0.7175 0.7140
Resistance levels: 0.7290 0.7330 0.7370
View Live Chart for the AUD/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.