AUD/USD analysis: base metal support Aussie

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7362

The Aussie was among the most benefited from dollar's weakness, with the AUD/USD pair reaching a fresh 4-week high of 0.7373 in the US afternoon, also underpinned by continued gains in base metals. Data released at the beginning of the day showed that Australian Building Permits rebounded in November after sinking in October, up by 7.0% monthly basis, against an upwardly revised slump of 11.8% in the previous month. The YoY figure resulted at -4.8%, against previous -24.9%. The country will release November Retail Sales´ figures during the upcoming Asian session, expected up by 0.4% from previous 0.5%. Technically, the pair has managed to break above a key technical level, the 50% retracement of its latest bearish run at 0.7340, where in the 4 hours chart, it's also the 200 EMA, while holding above a bullish 20 SMA, all of which supports some further advances. In the same chart, the Momentum indicator has lost upward strength and turned lower, barely holding above its 100 level, but the RSI indicator keeps nearing overbought readings. The 61.8% retracement of the same slide comes at 0.7390, the level to surpass to confirm further gains this Tuesday.

Support: levels: 0.7340 0.7300 0.7270

Resistance levels: 0.7390 9.7420 0.7450

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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