AUD/USD analysis: consolidating gains above 0.7800

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7826

Australian AIG performance of services index up next.
AUD/USD holding near recent multi-month high of 0.7845, key resistance.

The Australian dollar refused to give up against its American rival, holding near its weekly high of 0.7844 by the end of the US session, after trading as low as 0.7804 at the beginning of the day, a short-lived correction that had no particular trigger. The Aussie ignored better-than-expected US data, backed by firming commodities prices, with gold steady above 1,300.00, although easing post-FOMC Minutes, and crude oil prices rallying to fresh over two-year highs. Early Thursday, the country will see the release of its AIG Performance of Services index for December, previous at 51.7. The AUD/USD pair ends the day flat, after holding within Tuesday's range, and presents a neutral-to-bullish stance heading into the Asian opening, as it found buying interest around a bullish 20 SMA, currently around 0.7810, while technical indicators ease modestly, but still hold within positive territory, failing to anticipate next move. Nevertheless, the risk is lean towards the upside, with scope for an extension up to 0.7896, October monthly high, on a break above 0.7845, the immediate resistance.

Support levels: 0.7800 0.7770 0.7745

Resistance levels: 0.7845 0.7895 0.7920

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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