AUD/USD analysis: stocks keep it afloat, but bearish anyway
|AUD/USD Current price: 0.7480
- Australian data released overnight disappointed in terms of economic growth
- Dollar strong ahead of US housing, industrial data.
The AUD/USD pair trades marginally higher, despite broad dollar's weakness, with commodity-linked currencies benefiting from the solid performance of European equities, which shrugged off the sour tone of Wall Street. Data released overnight was quite discouraging, as the Westpac Consumer Sentiment index eased in May, resulting at -0.6% as in April, while wage price inflation rose 0.5% in Q1, slightly below the 0.6% previous or expected. The US calendar will offer Housing Starts and Building Permits for April, seen actually contracting monthly basis, and Industrial Production for the same month, seen ticking up 0.6%.
The pair peaked at 0.7496, retreating no modestly as selling interest seems now to be aligned around the 0.7500 figure. The short-term picture leans the scale toward the downside as the price remains below the 23.6% retracement of the latest weekly decline and below its 20 and 100 SMA, both in the 0.7520 region. Technical indicators in the mentioned chart turned flat within negative levels after a mild upward correction, also supporting a downward extension ahead.
Support levels: 0.7470 0.7435 07400
Resistance levels: 0.7495 0.7520 0.7550
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