AUD/USD Current Price: 0.6779
- Robust Australian employment data offset by persistent trade tensions.
- Aussie unable to capitalize on the better market mood.
- AUD/USD to resume its decline below 0.6740.
The AUD/USD pair closed Friday at 0.6775, pretty much unchanged for a second consecutive week. The better market mood seen by the end of the week was enough to keep the pair afloat, with sellers still strong at around 0.6800. Tensions surrounding the trade relationship between the US and China have been the main driver for the pair, offsetting encouraging employment-related Australian data, as wages grew by more than expected in the second quarter of the year, while the economy added more jobs than anticipated in July. The dismal sentiment escalated these days after China accused the US of breaking the agreement reached in the latest G-20 summit, although US President words by the end of the week cooled down concerns, at least temporarily. At the beginning of the week, Australian macroeconomic calendar will remain empty, which means that sentiment will continue to lead the way.
AUD/USD short-term technical outlook
The daily chart for the AUD/USD pair shows that the pair is in a consolidative stage, yet at risk of extending its decline, as it keeps developing below all of its moving averages and with the 20 DMA heading sharply lower below the larger ones. Technical indicators recovered from oversold readings but turned flat within negative levels, reaffirming the bearish case. In the shorter term and according to the 4 hours chart, the pair is technically neutral, as it´s stuck to a directionless 20 SMA and below bearish 100 and 200 SMA, while the RSI indicator turned modestly lower around its mid-line. The pair would need to advance beyond 0.6820 to be able to extend its positive momentum toward the 0.6900 region.
Support levels: 0.6740 0.6700 0.6675
Resistance levels: 0.6820 0.6845 0.6880
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
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 inflation forecast, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price keeps its range around $2,330, awaits US PCE data
Gold price is consolidating Thursday's rebound early Friday. Gold price jumped after US GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the Fed could lower borrowing costs. Focus shifts to US PCE inflation on Friday.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.