AUD/USD analysis: higher high daily basis, but confined to a tight range
AUD/USD Current price: 0.7225
- Australia’s consumer inflation expectations climbed to 4.0% in December.
- Chinese Retail Sales, Industrial Production, and Fixed Asset Investment for November to be out today.
The AUD/USD pair edged marginally higher for a fourth consecutive day, extending its weekly advance up to 0.7246 but trimming most gains ahead of the close. The Australian dollar has moved once again alongside equities, up with Asian ones and losing ground with Wall Street's weakness. The Aussie got help from Australia’s consumer inflation expectations which climbed to 4.0% in December vs. 3.6% in the previous month. There are no macroeconomic figures scheduled in Australia for this Friday, but China will release Retail Sales, Industrial Production, and Fixed Asset Investment for November, with the first expected to have increased by 8.8% YoY. Positive Chinese data tends to support the Aussie, as the market assumes that if China does well, so will be the mining country.
The 4 hours chart for the pair shows that the pair remains stuck around the 23.6% retracement of its latest decline, still meeting sellers around the 200 SMA, and above a directionless 20 SMA. The 100 SMA is directionless, converging with the 38.2% retracement of the same slide at around 0.7260. Technical indicators in the mentioned chart have lost upward strength and are currently pressuring their midlines, lacking enough strength to confirm another leg south. Nevertheless, repeated failure to advance could discourage bulls, yet the pair will only turn bearish on a break below 0.7170.
Support levels: 0.7200 0.7170 0.7140
Resistance levels: 0.7255 0.7300 0.7340
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.
