AUD/USD Forecast: Corrective decline could extend once below 0.7820
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFERAUD/USD Current Price: 0.7843
- Rallying base metals and the broad dollar’s weakness underpinned the pair.
- Australian NAB’s Business Confidence improved to 25 in April from 15 previously.
- AUD/USD could extend its slide in the near-term toward the 0.7770 price zone.
The AUD/USD pair hit 0.7890 this Monday, ending the day unchanged in the 0.7840 price zone. The aussie was backed by strengthening base metals and equities, and as investors kept selling the greenback. Copper prices soared to fresh record highs, while spot gold peaked at 1,845.39. Australia published April NAB’s Business Confidence, which improved to 25 from 15, while NAB’s Business Conditions resulted in 32 from 25 in March. Retail Sales were downwardly revised from 1.4% to 1.3% in March.
This Tuesday, the focus will shift to China, as the country will release April inflation figures. The Consumer Price Index is seen accelerating to an annual pace of 6.6%, while the monthly reading is expected at -0.2%, improving from -0.5% in March.
AUD/USD short-term technical outlook
The AUD/USD pair is flat for the day, correcting overbought conditions in the near-term. The 4-hour chart shows that technical indicators ease from extreme levels, although the pair needs to break below the 0.7820 support level to confirm a corrective slide. The bearish potential is limited according to moving averages, as the 20 SMA heads firmly higher above the longer ones, currently at around 0.7800.
Support levels: 0.7820 0.7770 0.7720
Resistance levels: 0.7860 0.7900 0.7950
AUD/USD Current Price: 0.7843
- Rallying base metals and the broad dollar’s weakness underpinned the pair.
- Australian NAB’s Business Confidence improved to 25 in April from 15 previously.
- AUD/USD could extend its slide in the near-term toward the 0.7770 price zone.
The AUD/USD pair hit 0.7890 this Monday, ending the day unchanged in the 0.7840 price zone. The aussie was backed by strengthening base metals and equities, and as investors kept selling the greenback. Copper prices soared to fresh record highs, while spot gold peaked at 1,845.39. Australia published April NAB’s Business Confidence, which improved to 25 from 15, while NAB’s Business Conditions resulted in 32 from 25 in March. Retail Sales were downwardly revised from 1.4% to 1.3% in March.
This Tuesday, the focus will shift to China, as the country will release April inflation figures. The Consumer Price Index is seen accelerating to an annual pace of 6.6%, while the monthly reading is expected at -0.2%, improving from -0.5% in March.
AUD/USD short-term technical outlook
The AUD/USD pair is flat for the day, correcting overbought conditions in the near-term. The 4-hour chart shows that technical indicators ease from extreme levels, although the pair needs to break below the 0.7820 support level to confirm a corrective slide. The bearish potential is limited according to moving averages, as the 20 SMA heads firmly higher above the longer ones, currently at around 0.7800.
Support levels: 0.7820 0.7770 0.7720
Resistance levels: 0.7860 0.7900 0.7950
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.