AUD/USD Forecast: Australian data to keep the upside limited
|AUD/USD Current Price: 0.6815
- The market’s sentiment improved with comments from US representatives.
- The Reserve Bank of Australia will release the Minutes of its latest meeting next Tuesday.
- AUD/USD at risk of resuming its decline, critical support at 0.6770.
The AUD/USD pair recovered from a fresh 4-week low at 0.6769 to trim part of its weekly losses and settle a handful of pips above the 0.6800 threshold. The market’s sentiment seesawed alongside US-China trade-related headlines, with investors’ concerns easing ahead of London close, following comments from US officials. Trump’s advisor Kudlow said that the arrangement is in its “final stages,” while US Commerce Secretary Wilbur Ross, later added that a trade deal would be done “in all likelihood.”
However, Australian disappointing employment data kept the upside at check. The current recovery, supported by a rally in Wall Street, seems poised to be short-lived, mostly if Australian data continues to miss the market’s expectations. There are no releases scheduled in Australia until Tuesday when the RBA will publish the Minutes of its latest meeting.
AUD/USD short-term technical outlook
The AUD/USD pair remains at risk of falling, as, in the daily chart, it continues developing below all of its moving averages, while technical indicators remain within negative levels, lacking directional strength. In the 4-hour chart, the recovery stalled around the 20 and 200 SMA, while technical indicators lost upward momentum just below their midlines, after correcting oversold conditions. Selling interest will likely surge on an approach to the 0.6900 level while sellers will be more aggressive on a break below 0.6770.
Support levels: 0.6770 0.6730 0.6700
Resistance levels: 0.6835 0.6860 0.6900
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