AUD/USD analysis: bulls willing to challenge bears' determination

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7436

Chinese inflation expected to be modestly up in July.
Aussie advances despite plummeting equities, backed by CAD's strength.

The AUD/USD pair retested its weekly highs by the end of the US session, settling a handful of pips below the key 0.7440/50 region after trading as low as 0.7382. The pair fell during US trading hours on returning trade war concerns that weighed on worldwide indexes but changed course as the greenback came under renewed selling pressure, particularly against commodity-linked currencies. Despite the sour tone of equities and plummeting oil prices, the Aussie soared, with no certain catalyst, although CAD strength, on headlines indicating that Canada main join NAFTA talks as soon as next week, may have had something to do with it. China will release July inflation figures seen up 0.2% MoM and by 1.9% YoY, while Australia has nothing to offer. The sharp recovery suggests that bulls are willing to challenge bears' determination right above the current level, and technical readings in the 4 hours chart support so, as indicators resumed their declines after nearing their midlines, while the pair settled firmly above a bullish 20 SMA, which advances above the larger ones. The key is still 0.7483, July high, as sellers will likely give up on a break above this last.

Support levels: 0.7400 0.7370 0.7330

Resistance levels: 0.7445 0.7485 0.7520

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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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