AUD/USD analysis: bulls willing to challenge bears' determination
|AUD/USD Current price: 0.7436
- Chinese inflation expected to be modestly up in July.
- Aussie advances despite plummeting equities, backed by CAD's strength.
The AUD/USD pair retested its weekly highs by the end of the US session, settling a handful of pips below the key 0.7440/50 region after trading as low as 0.7382. The pair fell during US trading hours on returning trade war concerns that weighed on worldwide indexes but changed course as the greenback came under renewed selling pressure, particularly against commodity-linked currencies. Despite the sour tone of equities and plummeting oil prices, the Aussie soared, with no certain catalyst, although CAD strength, on headlines indicating that Canada main join NAFTA talks as soon as next week, may have had something to do with it. China will release July inflation figures seen up 0.2% MoM and by 1.9% YoY, while Australia has nothing to offer. The sharp recovery suggests that bulls are willing to challenge bears' determination right above the current level, and technical readings in the 4 hours chart support so, as indicators resumed their declines after nearing their midlines, while the pair settled firmly above a bullish 20 SMA, which advances above the larger ones. The key is still 0.7483, July high, as sellers will likely give up on a break above this last.
Support levels: 0.7400 0.7370 0.7330
Resistance levels: 0.7445 0.7485 0.7520
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.