AUD/USD Forecast: Technical readings back a run toward 0.7100
|AUD/USD Current Price: 0.6913
- “Consensus on principles” between the US and China underpinned the Aussie.
- Australian Retail Sales and TD Securities Inflation coming out next.
- AUD/USD technically bullish, scope to reach the 0.7100 region.
The AUD/USD pair settled above 0.6900 its highest weekly close since July. The pair resumed its advance after retreating just modestly on Thursday, on the back of broad dollar’s weakness and despite softer-than-expected Chinese data. According to the official release, the NBS Manufacturing PMI contracted to 49.2 in October, while the Services index came in at 52.8, also missing the market’s expectations. The pair also found support in progress between trade talks between the US and China, as on Friday, the Chinese outlet Xinhua said the two economies ha reached a “consensus on principles,” during a telephone call.
Australia will release September Retail Sales this Monday, seen up by 0.2% MoM, following a 0.4% advance in the previous month, and October TD Securities Inflation, previously at 1.5% YoY.
AUD/USD short-term technical outlook
The daily chart for the AUD/USD pair shows that it confirmed a double-bottom figure, as it closed above the neckline at 0.6900, of around 230 pips’ height, which means that the pair could extend gains up to the 0.7100 region. In the same chart, the pair advanced above the 20 and 100 SMA, with the shortest heading higher. The 200 SMA offers an immediate dynamic resistance at around 0.6960, while technical indicators recovered after a mild-downward correction, heading higher near overbought levels, in line with further gains ahead. Shorter-term, and according to the 4-hour chart, the upside is favoured, as the pair continued meeting buyers around a bullish 20 SMA, while technical indicators hold well into positive territory, the Momentum heading north and the RSI directionless at around 62.
Support levels: 0.6880 0.6840 0.6800
Resistance levels: 0.6930 0.6965 0.7000
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