AUD/USD analysis: Chinese data to set the tone short-term

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7831

The AUD/USD pair closed the day with gains, but below the daily high achieved at the beginning of the day at 0.7835. The Australian dollar found support in encouraging local data, as the Melbourne Institute´s consumer inflation expectations for October rose to 4.3%, well above September figure of 3.8%, while home loans approvals rose in August, up to 1.0% doubling market's expectations. While up for the day, the pair was unable to extend its gains beyond the key technical resistance around 0.7835, as longer-term, central banks' divergences keep it intrinsically bearish. Chinese macroeconomic calendar will have plenty to offer during the upcoming Asian session, including September trade balance and money figures, usually big market movers for the Aussie. In the meantime, the short term picture presents a modest bullish stance, as the price kept held near the mentioned daily high at the end of the day, having advanced above a bullish 20 SMA, and with technical indicators aiming higher within positive territory, after a modest downward correction. Beyond the mentioned daily high the pair has scope to extend towards the 0.7900 region where selling interest will likely reject any potential advance.

Support levels: 0.7770 0.7730 0.7680

Resistance levels: 0.7835 0.7880 0.7925

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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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