AUD/USD analysis: dollar weakness limited the slide, but intrinsically bearish

AUD/USD Current price: 0.7624

  • Aussie's gains limited despite a weaker dollar.
  • Consumer confidence and Q3 wage price index up next.

The AUD/USD pair bounced from the 0.7609 4-month low set on Monday but was unable to hold on to its gains, ending the day pretty much unchanged at 0.7624. The Aussie got a boost from local data, as the NAB's business conditions indicator for October rose to 21, its highest on record. Business confidence  remained unchanged at 8 after September figure was upwardly revised. One of the reasons that helped the pair retreat from a daily high of 0.7649, were Chinese macroeconomic figures released early Asia, which were softer than expected, with retail sales up by 10.0% in October, below the 10.3% expected, and Industrial Production up 6.2%, missing expectations of 6.3%. This Wednesday, Australia will release its November Consumer Confidence index, and the Q3 wage price index.  The dominant bearish trend remains in place considering price's behavior, and technical readings in the 4 hours chart support it the pair remains below a bearish 20 SMA, while technical indicators hover within negative territory, lacking directional strength as the pair remains within its latest range. The immediate support is now the 0.7610 level, with a break below it favoring a test of 0.7570, where the pair has a couple of daily lows from early July, followed later by 0.7535.

Support levels: 0.7610 0.7570 0.7535

Resistance levels: 0.7660 0.7695 0.7730

View Live Chart for the AUD/USD

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