AUD/USD analysis: pressuring highs, but 0.7200 still elusive

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7187

RBA Meeting's Minutes expected to repeat the usual positive economic outlook rhetoric.
Australia Housing Price Index foreseen falling 0.7% in the three months to June.

The AUD/USD pair trimmed Friday's losses on the back of broad dollar's weakness, but was unable to regain the 0.7200 level, stalling its intraday recovery a few pips below it. The better performance of gold, with the bright metal regaining the 1,200.00 level, added to Aussie's recovery, although cautious surrounding US-China trade tensions prevent it from extending its advance beyond the key figure. The country will release its quarterly House Price Index data for Q2 during the upcoming Asian session, while the RBA will publish the Minutes of its latest meeting. House prices are expected to have declined by 0.7% in the three months to June, while the central bank is foreseen reiterating its latest positive economic rhetoric, adding nothing news to what the market already knows.

The pair found intraday support around the 23.6% retracement of its latest daily decline now battling with the 38.2% retracement of the same slide, so far unable to break above it. In the 4 hours chart and for the upcoming sessions, the pair offers a neutral-to-bullish stance, as it regained ground above a bullish 20 SMA, but remains below a bearish 100 SMA, while technical indicators recovered, the RSI now heading north around 59 and the Momentum lagging, steady around its mid-line. The next Fibonacci resistance comes at around 0.7225, and the pair would need to clearly break above it to offer a clearer bullish stance.

Support levels: 0.7165 0.7130 0.7095

Resistance levels: 0.7225 0.7260 0.7300

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.

AUD/USD extends the range play above 0.7200 as traders await US inflation data

AUD/USD is seen extending its consolidative price move above 0.7200 during the Asian session on Thursday amid mixed cues. Rising RBA rate-hike bets keep the Aussie close to its highest level since May 14. However, hawkish Fed expectations and escalating US-Iran tensions offer some support to the US Dollar, capping the currency pair as traders await US inflation figures.

USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold remains stuck between two key averages ahead of the US inflation test

Gold is building on the previous recovery from one-week lows near $4,350 early Thursday, stretching beyond $4,400. Gold buyers now look forward to the US Producer Price Index (PPI) and Consumer Price Index (CPI) data due Thursday and Friday, respectively, for a sustained turnaround. Gold is finding continued support from the United States (US) Treasury Department’s measure to rescue the bond market.

Oil surge drives Equity rout

The traditional September selling in equities really seems to be taking hold thanks to higher oil prices, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG. The second oil surge in a year has really begun to drag stock markets lower, as it combines with pre-CPI anxiety among investors who already regard next week’s Fed meeting with plenty of trepidation.

Jobs opened the door for the Fed — inflation decides whether it walks through

The latest US jobs report did not end the debate over the Federal Reserve’s (Fed) next move. It may have done something more subtle: it gave policymakers permission to keep their options open. After months of softer labour market signals, August delivered a stronger-than-expected rebound.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.