AUD/USD Analysis: better mood helped it bounce, but still below 0.6900
|AUD/USD Current Price: 0.6869
- Australian housing data disappointed, sending AUD/USD to a fresh multi-month low.
- The risk for the pair remains skewed to the downside amid central banks' imbalances.
The AUD/USD pair bounced from a fresh multi-month low of 0.6831, achieved early Asia, thanks to the better performance of equities and the improved market mood. The Aussie came under selling pressure during Asian trading hours, as Australian housing data came in below the market's expectations, with the quarterly House Price Index down by 3.0% and by 7.4% when compared to a year earlier. China released the May House Price Index, which matched the previous month reading with 10.7%. The U-turn took place mid-US afternoon when news hit the wires indicating that trade talks between the US and China will resume within the G-20 meeting next week. There are no macroeconomic news scheduled in Australia and China this Wednesday.
The pair is closing the day with gains after falling for the previous four, although still below the 0.6900 figure. The 4 hours chart shows that it topped around 0.6880, where the 23.6% retracement of the latest daily slide converges with a bearish 20 SMA, providing a strong intraday resistance. Technical indicators in the mentioned chart, have recovered from oversold levels, the Momentum maintaining its upward slope below its 100 level, although the RSI easing, currently at around 42, limiting the potential upward for the pair.
Support levels: 0.6850 0.6820 0.6775
Resistance levels: 0.6900 0.6940 0.6980
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.