AUD/USD Forecast: Gold demand keeps boosting the Aussie
|AUD/USD Current Price: 0.6392
- Gold prices surged to their highest since November 2012 amid risk-off.
- Australian NAB’s Business Confidence Index for March, foreseen at -2 from -4 previously.
- AUD/USD trading around 0.6400, technically bullish although overbought.
Commodity-linked currencies were the best performers this Monday, with the AUD/USD extending its advance beyond the 0.6400 figure. The Canadian dollar also appreciated, despite weaker oil prices. The main catalyst for these advances seems to be demand for gold, as the bright metal soared to its highest since November 2012, above $1,720.00 a troy ounce. When rushing into the Aussie, speculative interest ignored the sour tone of equities. The American dollar, in the meantime, remained out of the market’s favour.
Australian markets will resume activity after closing on Thursday, which may result in some choppy price action early Asia. The country will release the NAB’s Business Confidence Index for March, foreseen at -2 from -4 previously, and the NAB’s Business Conditions Index, seen improving in the same month to 1 from 0. Also, China will publish its March Trade Balance, and the market foresees a surplus of $ 18B amid a sharp decline in imports.
AUD/USD short-term technical outlook
The AUD/USD pair has advanced for a sixth consecutive day, hovering around 0.6400. The 4-hour chart shows that the pair has continued to advance above all of its moving averages, with the 20 SMA advancing above the larger ones. The Momentum indicator holds within positive levels but lacks directional strength, while the RSI maintains a mild-bullish stance at around 76.
Support levels: 0.6365 0.6300 0.6295
Resistance levels: 0.6440 0.6475 0.6500
View Live Chart for the AUD/USD
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.