AUD/USD analysis: recovery stalled below key resistance
|AUD/USD Current price: 0.7377
- Australian services PMI, Retail Sales, and Trade Balance figures to be out this Wednesday.
- AUD/USD needs to surpass 0.7440 to become more attractive to bulls.
The Aussie posted a nice comeback from yearly lows against the greenback of 0.7310, to test a daily high of 0.7403 on the back of easing trade-war concerns and a less dovish RBA. In its monthly meeting, the central bank left the cash rate unchanged at 1.5% for the 23rd consecutive meeting, but sounded less concerned about cooling house market, as the statement said that "nationwide measures of housing prices are little changed over the past six months." However, the sector remains troubled, as shown by May Building Permits which fell by 3.2% in the month vs. a 1.0% advance expected, increasing 3.1% YoY, well below the 9.9% forecasted buy above the previous 1.9%. April' s monthly figure was revised to -5.6% from -5.0%. The country will release this Wednesday the AIG Performance of Services Index for June, latest at 59, alongside with May Retail Sales and Trade Balance figures. Disappointing figures could see the pair returning to its yearly low of 0.7310. The 4 hours chart presents a neutral technical stance, as despite the recovery, indicators remain directionless around their midlines, while the pair settled a few pips above a horizontal 20 SMA, but below a bearish 100 SMA. The 0.7440 is still the key resistance to overcome to see a more constructive upward stance in the pair.
Support levels: 0.7345 0.7310 0.7280
Resistance levels: 0.7410 0.7440 0.7490
View Live Chart for the AUD/USD
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