AUD/USD Analysis: bearish ahead of RBA Minutes

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6765

RBA to release the Minutes of it August meeting early Asia.
AUD/USD confined below 0.6800, risk skewed to the downside.

The AUD/USD pair spent the day trading uneventfully around Friday’s close, with the Aussie unable to capitalize the better market mood. Worldwide indexes closed in the green, with US ones led by tech-related shares, up after the US decided to extend Huawei’s temporary license for 90 days. Nor Australia, neither the US released relevant macroeconomic data, leaving the pair directionless within familiar levels. The Reserve Bank of Australia is scheduled to release the Minutes of its August meeting during the upcoming Asian session, with investors waiting for fresh clues about the future of the macroeconomic policy. Further rate cuts are expected in the country, although the market is looking for the next move to take place next year.

AUD/USD short-term technical outlook

The AUD/USD pair continues trading around a directionless 20 SMA, in the 4 hours chart, while below the larger moving averages, with the 100 SMA currently providing a dynamic resistance at around 0.6800. Technical indicators have extended their declines, now entering negative territory, although their bearish strength is quite limited given the limited intraday range. The downward momentum will likely increase on a break below 0.6740, the immediate support.

Support levels: 0.6740 0.6700 0.6675

Resistance levels: 0.6800 0.6845 0.6880

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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