AUD/USD analysis: commodities weigh on the Aussie

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7598

The AUD/USD pair advanced up to 0.7640 this Monday, although a broadly stronger dollar, and weaker commodities' prices sent the Aussie lower, sending the pair into the red late in the US afternoon. Market's attention is centered in the release of Australian inflation during the upcoming Asian session, as weaker-than-expected readings may fueled speculation of an upcoming RBA rate cut, resulting in another leg lower in the pair. Inflation is expected to have remained stable in the Q3, at 0.4%, while on a year-on-year reading, it's expected to have remained at 1.7%. Struggling around 0.7600, the 4 hours chart shows that the early advance was contained by a sharply bearish 20 SMA, while the Momentum indicator in the mentioned time frame moves back and forth between negative territory, failing to suggest a certain upcoming direction, while the RSI indicator in the same chart, heads modestly lower around 41, all of which supports a bearish extension. A daily ascendant trend line coming from 0.7148, May 30th daily low, stands at 0.7550, and a break below it could exacerbate selling interest resulting in the pair extending its slide down to 0.7450.

Support levels: 0.7590 0.7550 0.7500

Resistance levels: 0.7625 0.7660 0.7700

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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