AUD/USD Analysis: better mood helped it bounce, but still below 0.6900

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6869

Australian housing data disappointed, sending AUD/USD to a fresh multi-month low.
The risk for the pair remains skewed to the downside amid central banks' imbalances.

The AUD/USD pair bounced from a fresh multi-month low of 0.6831, achieved early Asia, thanks to the better performance of equities and the improved market mood. The Aussie came under selling pressure during Asian trading hours, as Australian housing data came in below the market's expectations, with the quarterly House Price Index down by 3.0% and by 7.4% when compared to a year earlier. China released the May House Price Index, which matched the previous month reading with 10.7%. The U-turn took place mid-US afternoon when news hit the wires indicating that trade talks between the US and China will resume within the G-20 meeting next week. There are no macroeconomic news scheduled in Australia and China this Wednesday.

The pair is closing the day with gains after falling for the previous four, although still below the 0.6900 figure. The 4 hours chart shows that it topped around 0.6880, where the 23.6% retracement of the latest daily slide converges with a bearish 20 SMA, providing a strong intraday resistance. Technical indicators in the mentioned chart, have recovered from oversold levels, the Momentum maintaining its upward slope below its 100 level, although the RSI easing, currently at around 42, limiting the potential upward for the pair.

Support levels: 0.6850 0.6820 0.6775

Resistance levels: 0.6900 0.6940 0.6980

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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