AUD/USD analysis: neutral-to-bearish ahead of the Asian opening

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7899

Australian Q4 wage price index to be released early Asia.
AUD/USD near strong support, bearish breakout not yet confirmed.

The AUD/USD pair posted a modest daily lost this Tuesday, but held above the 0.7890 figure by the end of the day, despite a fresh weekly low 0f 0.7879. The greenback appreciated against most of its major rivals, but some strong levels held, like the 0.7890 Fibonacci support in AUD/USD. The RBA released the Minutes of its latest meeting at the beginning of the day, but as usual, policymakers repeated that despite the outlook for the domestic and global economy have improved, inflation is expected to rise only gradually, re-asserting that they are in no rush on raising rates. The statement also indicated that inflation is likely to rise only gradually, and therefore there's no rush in rising rates. Australia will release its Q4 wage price index during the upcoming Asian session, seen unchanged at 0.5% quarterly basis and at 2% YoY. The pair presents a neutral stance, although bearish pressure is building up after the lower low. In the 4 hours chart, the price is unable to recover above a flat 20 SMA, currently around 0.7920, but struggling around a horizontal 200 EMA and the mentioned Fibonacci level. Indicators hold below their mid-lines with different directional strength, anyway leaning the scale toward the downside.

Support levels: 0.7890 0.7850 0.7810

Resistance levels: 0.7930 0.7965 0.8000

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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