AUD/USD analysis: Aussie saved by stocks, but still eminently bearish

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7257

The AUD/USD recovered from a fresh 6-month low of 0.7222 to close the day marginally higher around 0.7260. At the beginning of the day, the Minutes of the latest RBA meeting gave the Aussie a mild boost, as the Central Bank hinted that it's content to leave rates steady at the time being, although it warned about the already "high levels" of household debt, as a consequence of lower interest rates boosting borrowing. A brief spike above 0.7300 was quickie reversed on dollar's strength, but as seems usually these days, investors rushed to take some profits out of the table ahead of the US close, with the Aussie also benefiting from a rally in US stocks. Despite closing in the green the pair has settle a lower low and a lower high daily basis, which maintains the risk towards the downside, making of this intraday bounce a mere correction. Short term, the 1 hour chart the price is a few pips above a still bearish 20 SSMA, whilst technical indicators have turned flat within neutral territory. In the 4 hours chart, the price remains well below a bearish 20 SMA around the 0.7290 mark, while technical indicators have corrected oversold conditions and head north, but still remain below their mid-lines, indicating limited buying interest around the pair.

Support: levels: 0.7210 0.7175 0.7140

Resistance levels: 0.7290 0.7330 0.7370

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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