AUD/USD: upward correction likely, but bearish trend prevails
|AUD/USD Current price: 0.7120
- Australian Consumer Confidence fell further in September amid rising mortgage rates, political woes.
- Negative sentiment sends the AUD lower, better mood fails to trigger advances.
The AUD/USD pair continues pressuring yearly lows, confined to a tight range around the 0.7100 level, as despite market mood seems to be improving and stocks trying to regain the upside, a disappointing consumer confidence figure keeps the Aussie subdued. The Westpac index released overnight came in at -3.0% for September, following a -2.3% in August. The decline in confidence was the combined result of rising mortgage rates and political woes, according to the official report. Ahead of BOE and ECB's monetary policy meeting this Thursday, speculative interest remains side-lined, exacerbating range trading in the AUD/USD pair.
The continued range has helped technical indicators in the short-term to correct extreme oversold conditions, and in fact in the 4 hours chart, the pair is currently advancing above a bearish 20 SMA as technical indicators advance, the Momentum trying again to enter positive readings and the RSI now at 46, all of which falls short from confirming a bottom and suggesting additional gains ahead, moreover as demand for the commodity-linked currency is nowhere to be found. The pair could start an upward corrective movement on an acceleration through 0.7135, the immediate resistance, which can extend up to 0.7210, where selling interest will likely reappear.
Support levels: 0.7070 0.7035 0.7000
Resistance levels: 0.7135 0.7180 0.7210
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