AUD/USD analysis: bearish breakout around the corner, again

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7564

AUS Q3 GDP miss triggered an Aussie sell-off.
Australian trade balance an housing data ahead.

The AUD/USD pair accelerated its decline this Wednesday after hitting 0.7653 on Tuesday, trading by the end of the day near a daily low of 0.7558, after taking a hit during Asian trading hours from wors3-than-expected GDP figures. The economy grew 0.6% in the third quarter, missing market's expectations of 0.7%, while the annual rate stood at 2.8%, below forecasts for 3% growth. The slower rate of growth was attributed to consumer spending advancing at its slowest pace since 2008, which means that RBA's hands will remain tied for longer. Australia will release housing and trade figures for October during the upcoming session, and worse-than-expected numbers could well push the pair below the 0.7530 level, November multi-month low, implicating, therefore, further declines ahead. Short-term, technical readings in the 4 hours chart back an extension downward, as the price is now developing well below a bearish 20 SMA, while technical indicators present a strong downward momentum well below their mid-lines.

Support levels: 0.7530 0.7500 0.7450

Resistance levels: 0.7580 0.7610 0.7640

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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