AUD/USD Forecast: Advance set to continue in the short-term
|AUD/USD Current Price: 0.6744
- Australian upbeat data underpinned the pair at the beginning of the day.
- USD demand amid rallying equities weighed on the pair during US trading hours.
- AUD/USD could accelerate its recovery if 0.6770 finally gives up.
The AUD/USD pair advanced for a third consecutive day, reaching an intraday high of 0.6773, although trimming most of its daily gains ahead of the close. The Aussie was backed by better than expected Australian data, as the country’s AIG Performance of Construction Index for January came in at 41.3 from 38.9 in December. The Commonwealth Bank Services PMI for the same month beat expectations and reentered expansion territory, up to 50.6. The Chinese Caixin Services PMI, however, missed the market’s expectations, down to 51.8 in January from 52.5 in December.
The pair eased during US trading hours, despite the robust performance of Wall Street, on the heels of upbeat American data. During the upcoming Asian session, the country will release its December Trade Balance, with the surplus seen at 5950M, and Retail Sales for the same month, seen down by 0.2%.
AUD/USD short-term technical outlook
Now trading at around 0.6740, the AUD/USD pair holds on to its short-term positive stance. The 4-hour chart shows that it continues to develop above a bullish 20 SMA, although below the larger ones, which maintain their bearish slopes. Technical indicators have retreated from overbought levels but stabilized well into positive levels. Quite a relevant static resistance level is 0.6770, with another attempt to advance beyond it exposing the 0.6840 price zone.
Support levels: 0.6700 0.6670 0.6630
Resistance levels: 0.6770 0.6800 0.6840
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