AUD/USD analysis: no progress made, but downside still limited

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7676

The AUD/USD pair held within its usual 0.76/0.77 range for one more day, easing at the beginning of the day after the release of the RBA Minutes, which showed that policymakers will keep rates low for longer. Among the highlights the minutes attributed the decline in Q3 GDP to bad weather, coal supply disruptions and slower than expected growth in consumption, considering it temporarily. Also, medium-term inflation expectations remained “well anchored” as the committee anticipates inflation will pick up gradually. Policymakers reiterated their concern over Aussie strength, as an appreciating AUD could complicate the economic transition. Technically, the 4 hours chart shows that the price is now trying to recover above a bearish 20 SMA, whilst technical indicators have turned modestly higher, but continue hovering around their mid-lines, not enough to confirm additional gains ahead. As long as above 0.7600, the downside seems well limited, although gains beyond 0.7700 will likely be short-lived, with bulls rushing to take profits out of the table.

Support levels: 0.7630 0.7600 0.7565

Resistance levels: 0.7700 0.7735 0.7700

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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