AUD/USD analysis: Q3 inflation in the spotlight
|AUD/USD Current price: 0.7600
The AUD/USD pair closed the week flat at 0.7600 after trading as high as 0.7734 on Thursday, reversing gains on the back of a disappointing Australian jobs report, and weaker oil prices by the end of the week. During the upcoming days, Australia will release its Q3 inflation figures, and a weaker-than-expected reading will likely fuel speculation of another rate cut in the country, triggering then additional AUD weakness. Ever since topping for the year at 0.7834 last April, the pair has been unable to regain the 0.7700 level, as gains beyond it have been quickly reverted. In opposition, buyers have been containing the downside around 0.7450 since late June, being this last the 38.2% retracement of this year's rally. Technically, the daily chart shows that the price is now below a modestly bearish 20 SMA, while technical indicators have also turned south within neutral territory, indicating that the risk is towards the downside. A daily ascendant trend line coming from 0.7148, May 30th low, stands around 0.7550 for this week, and a break below it should see the pair extending its slide towards the base of the wider range. In the 4 hours chart, the technical stance is clearly bearish, given that indicators present sharp bearish slopes within negative territory, whilst the 20 SMA turned sharply lower well above the current level.
Support levels: 0.7590 0.7550 0.7500
Resistance levels: 0.7620 0.7660 0.7700
View Live Chart for the AUD/USD
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