AUD/USD analysis: bearish below 0.7450, with scope to retest 0.7300

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7399

The Aussie got a boost from better-than-expected Chinese PMI figures at the beginning of the day, spiking up to 0.7419 against its American rival, although it later retreated, remaining contained by selling interest around 0.7400 for the rest of the day. The Chinese NBS Manufacturing PMI for November surged to 51.7 from previous 51.2, a multi-year high, while the Non-manufacturing PMI printed 54.7 from previous 54.0, easing concerns about an economic slowdown in the world's second largest economy. The pair traded as low as 0.7370 in the US afternoon, dragged lower by strong US manufacturing PMIs readings, but also weighed by a continued slide in gold prices, as the commodity reached fresh 10-month lows. From a technical point of view, the risk remains towards the downside for the AUD/USD, as in the 1 hour chart, the price is barely holding above its 20 SMA, whilst technical indicators have entered bearish territory, with modest downward slopes. In the 4 hours chart, the 20 SMA has extended its slide above the current level, while technical indicators hover within bearish territory with no clear directional strength. A downward extension below the 0.7370 level, should support a slide towards the 0.7300 region later on the day.

Support levels: 0.7370 0.7330 0.7290

Resistance levels: 0.7420 0.7460 0.7495

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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