AUD/USD analysis: inflation readings and RBA in the spotlight
|AUD/USD Current price: 0.7450
The AUD/USD pair closed the week flat at 0.7450, having fell sharply last Wednesday, as industrial metals plunged in Asia after exchanges in the country lowered the daily trading limit and raised margin requirements in an attempt to curb speculation. A recovery in metals and mixed US employment figures helped the pair to recover some ground, although further gains will depend on the RBA stance this Tuesday. The Australian central bank will have its economic policy next Tuesday, while early Monday the University of Melbourne will release its inflation estimates for November. The RBA is largely expected to remain on hold, as inflation has been showing some signs of improvement, whilst Governor Lowe has so far offered a cautious approach to any further interest rate cuts. Technically, the daily chart shows that the price has been unable to establish above a bearish 20 DMA that stands a few pips above the current level, while technical indicators head north, but within bearish territory. In the 4 hours chart, the Momentum indicator heads sharply higher above its 100 level, while the price stands above a flat 20 SMA and the RSI indicator hovers around 56, supporting some additional gains in the short term towards the 0.7500 region.
Support levels: 0.7410 0.7370 0.7330
Resistance levels: 0.7495 0.7540 0.7580
View Live Chart for the AUD/USD
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