AUD/USD analysis: closer to 0.7000 but still below, as G20 looms
|AUD/USD Current Price: 0.6987
The Antipodeans outperformed on Wednesday, with the New Zealand dollar leading after the RBNZ left rates unchanged. The AUD/SUD resumed the upside and posted the biggest daily close since June 7. The key driver was an improvement in risk sentiment that offset higher US yields and concerns ahead of the G20 summit in Japan with the potential US-China trade deal in focus. The outcome of the meeting is likely to have a significant impact on the pair.
The calendar shows no data from Australia on Thursday while in the US, final Q1 GDP numbers are expected to present a modest revision to the upside. Also, jobless claim and pending home sales for May are due. The bond market will be watched closely by traders to see if the rebound in yields can continue.
The pair has been rising steadily since last week, and a consolidation or a correction is due. The critical resistance at 0.7000 is a candidate for a swing level. If the correction takes place, the essential support is the 20-day SMA at 0.6935/40. While a breakout above 0.7000 will face resistance at 0.7020. A daily close well above 0.7010 could mean the Aussie is ready to rise further, probably to test a downtrend line from November highs that at the moment, stands at 0.7090. Ahead of the Asian session, the pair looks set to continue with the consolidation around 0.6985. The immediate support is 0.6970, below, the very short-term bias would favor more losses.
Support levels: 0.6975 0.6940 0.6900
Resistance levels: 0.6995 0.7025 0.7050
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