AUD/USD analysis: easing from highs, but far from bearish

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7594

The AUD/USD pair closed the day in the red, but not far from its recent multi-week high of 0.7635, with the Aussie reluctant to dollar's strength, but undermined by disappointing local news. Early Monday, Moody cut the long-term credit rating of the big four Australian banks, from Aa2 to Aa3, amid "elevated risks" in the household sector, according to the rating agency. Also, RBA Governor Lowe offered some mixed signals, concerned about a possible slowdown in local growth amid political tension over energy investment and climate policy with the opposition. Despite confident on employment, Lowe also expressed concerns about growth in wages being unusually low. The pair has lost its upward strength, and it's at risk of extending its decline in the short term, given that in the 4 hours chart, the price has broken below its 20 SMA, now offering an immediate intraday resistance around 0.7600. Nevertheless, technical indicators in the mentioned time frame hold right above their mid-lines, with only the RSI presenting a modest bearish slope.

Support levels: 0.7560 0.7530 0.7490

Resistance levels: 07600 0.7640 0.7675

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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