AUD/USD analysis: Q4 inflation to set the tone

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7586

The Aussie kept rallying against the greenback, with the AUD/USD pair reaching a fresh two-month high of 0.7608, in where the pair lost upward momentum, and pulled back to the 0.7550 region. There was not certain catalyst beyond the advance, as there were no relevant macroeconomic releases in the past Asian session. Mid Tuesday, however, the Austrian Conference Board Leading Economic Index increased 0.5% in November 2016 to 105.3, helping the pair in recovering ground. Early Wednesday, the country will release its Q4 inflation figures, expected little changed from the third quarter figures. Any kind of deviation will likely affect the pair sharply, with an uptick in figures favoring another leg higher towards the 0.7700 region. Technical indicators in the 4 hours chart have lost upward strength within positive territory, but the price holds above a bullish 20 SMA, indicating that further gains are likely, moreover if short term buying interest continues to defend the 0.7550 level.

Support levels: 0.7550 0.7500 0.7450

Resistance levels: 0.7610 0.7645 0.7690

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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