AUD/USD: intrinsically bearish, but moving higher
|AUD/USD Current price: 0.7818
The Aussie got a boost from better-than-expected consumer inflation expectations, as measured by the Melbourne Institute. Expectations rose to 4.3% in October, well above September 3.8%, while home loans approvals rose in August, up to 1.0% doubling market's expectations. The AUD/USD pair advanced up to 0.7835 in London trading hours, backed by Australian positive numbers and persistent dollar's weakness, easing modestly ahead of US data releases. Still holding above the 0.7800 level, the 4 hours chart for the pair shows that the price is well above a bullish 20 SMA, whilst technical indicators begun retreating from overbought readings, but hold within positive territory. The mentioned daily high is a strong static resistance that could be broken on worse-than-expected US PPI figures, to be released later today. However, the pair is within a bearish trend longer term, amid central banks' divergences, and a steeper recovery is out of the table for now. Beyond the mentioned daily high, however, the pair can advance towards the 0.7900 region before meeting enough selling interest to send it back lower.
Support levels: 0.7800 0.7770 0.7730
Resistance levels: 0.7835 0.7880 0.7910
View Live Chart for the AUD/USD
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