AUD/USD Current Price: 0.6726
- US-China trade talks to resume this Thursday, market waiting for them.
- Australian Consumer Confidence plunged to -5.5% in October, according to Westpac.
- AUD/USD bearish in the short-term but needs to lose 0.6700 to confirm a slide.
The Australian dollar attempted to recover some ground against its American counterpart, but once again closed the day little changed around 0.6730. The intraday advance was the result of positive headlines related to the US-China trade relationship, as there were news making the rounds indicating that China is open to a partial trade, despite US’s administration latest actions against the country. However, plummeting consumer confidence in the country limited the advance, as, according to Westpac, the index fell to -5.5% in October from -1.7% in September. The greenback strengthened against its Australian rival despite US indexes solid close.
Australia will release October Consumer Inflation Expectations during the upcoming Asian session, foreseen at 3.2% from the previous 3.1%. The country will also release August Home Loans, seen up in the month by 0.2% after adding 5.0% in the previous month.
AUD/USD short-term technical outlook
The AUD/USD pair keeps struggling to hold above a Fibonacci support, the 23.6% retracement of its September slide, after correcting toward the 50% retracement of the same slump by the end of last week. The risk is skewed to the downside, according to the 4 hours chart as the intraday advance was contained by a bearish 20 SMA which keeps heading south below the larger ones, as technical indicators remain within negative levels, the Momentum heading south and the RSI stable at around 44.
Support levels: 0.6700 0.6670 0.6625
Resistance levels: 0.6770 0.6805 0.6840
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD rises to two-day high ahead of Aussie CPI
The Aussie Dollar recorded back-to-back positive days against the US Dollar and climbed more than 0.59% on Tuesday, as the US April S&P PMIs were weaker than expected. That spurred speculations that the Federal Reserve could put rate cuts back on the table. The AUD/USD trades at 0.6488 as Wednesday’s Asian session begins.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure
Bitcoin (BTC) price strength continues to grow, three days after the fourth halving. Optimism continues to abound in the market as Bitcoiners envision a reclamation of previous cycle highs.
Australia CPI Preview: Inflation set to remain above target as hopes of early interest-rate cuts fade
An Australian inflation update takes the spotlight this week ahead of critical United States macroeconomic data. The Australian Bureau of Statistics will release two different inflation gauges on Wednesday.