AUD/USD Forecast: Selling interest keen around 0.6865
|AUD/USD Current Price: 0.6839
- Chinese trade data reflected persistent tensions with the US.
- Aussie underpinned by Wall Street’s rally, gains limited by trade war jitters.
- AUD/USD neutral, bears could take over on a break below 0.6800.
The AUD/USD pair finished Friday and the week with gains at 0.6840, as the greenback strength post-NFP was offset by a solid rally in US indexes. The Australian dollar got boosted at the beginning of the week by an optimistic RBA and dismal US data reaching 0.6865, a level that the market was unable to take over afterward. Wall Street rallied on Friday on the back of a solid US employment report, underpinning the pair.
During the weekend, China released its November Trade Balance, which posted a surplus of $38.73B, missing the market’s expectations of $46.3B.In dollar terms, imports were up by 0.3%, but exports plummeted, down by 1.1%, the fourth consecutive monthly decline amid persistent trade war jitters. Also, Chinese exports to the US fell 12.5%, while imports dropped 23.3% in the year to November. Nor Australia neither China will release macroeconomic data this Monday.
AUD/USD short-term technical outlook
The AUD/USD pair has settled around the 50% retracement of its November slump, meeting sellers at the next Fibonacci resistance at 0.6865. In the daily chart, the pair is developing below bearish 20 and 100 SMA, both converging around the 0.6800 level, while technical indicators hold within positive levels, although lacking strength upward. In the 4-hour chart, the pair offers a neutral-to-bullish stance, holding just above directionless 20 and 200 SMA, as technical indicators hover around their midlines, without offering directional clues. The pair would need to break above 0.6865 or below the 0.6800 figure to attract speculative interest.
Support levels: 0.6800 0.6770 0.6730
Resistance levels: 0.6865 0.6890 0.6920
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