AUD/USD Current Price: 0.6789

  • Optimistic US-China trade developments pushed the pair to the 0.6800 region.
  • China September Trade Balance seen posting a surplus of $33.30B.
  • AUD/USD bullish potential limited as long as below 06825.

The AUD/USD pair has closed the week with gains just below the 0.6800 figure, after hitting Friday a daily high of 0.6810. The pair rallied on the back of hopes of a breakthrough in the US-China trade war. The advance, however, has been shallow when compared to other high-yielding assets, as speculation that the Reserve Bank of Australia is not done with cutting rates, kept demand limited for AUD.

The week will kick-start with China releasing September trade figures. The Trade Balance surplus is seen at $33.30B, with imports expected to have declined by 5.2% and exports by 3.0%. The Australian macroeconomic calendar has nothing to offer at the beginning of the week. In the meantime, the market keeps waiting for headlines related to trade negotiations, which have more chances of triggering relevant price movements.

AUD/USD short-term technical outlook

The pair’s daily chart shows that it has recovered above the 23.6% retracement of its latest slump, measured between 0.7081 and 0.6670, also above a bearish 20 DMA which converges with the Fibonacci support. The 38.2% retracement is a relevant resistance at 0.6825. The same chart shows that the momentum upward is limited, as technical indicators are barely above their midlines. The chart also shows that the pair is developing a double floor figure, to be confirmed on a break above the neckline at around 0.6900. In the 4 hours chart, the pair has settled above all of its moving averages, while technical indicators are retreating modestly from overbought levels, limiting the bearish potential although falling short of suggesting additional gains ahead, at least as long as the pair remains below the mentioned 0.6825 level.

Support levels: 0.6770 0.6730 0.6700

Resistance levels: 0.6825 0.6860 0.6900

View Live Chart for the AUD/USD

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

Dollar in trouble, EUR/USD recovers the 1.1000 level

The American currency came under selling pressure, although the EUR/USD pair is a laggard, barely above the 1.1000 figure. Trump´s impeachment process seems to be behind the latest slide.

EUR/USD News

GBP/USD approaches 1.2900 as the greenback eases

The GBP/USD pair is at fresh weekly highs in the 1.2880 region, as speculative interest moved away from the dollar, and in spite of poor UK data.

GBP/USD News

USD/JPY slumps to fresh 10-day lows near 108.30 on falling US T-bond yields

The USD/JPY pair came under renewed bearish pressure during the American tracing hours and slumped to its lowest level in ten days at 108.25 as the dismal market mood allowed the JPY to continue to gather strength against its rivals as a safe haven.

USD/JPY News

US Dollar Index: DXY suck at monthly highs near 98.40 level

DXY (US Dollar Index) is trading in a bull trend above the main daily simple moving averages (DMAs). This Thursday the Greenback is once again challenging the 98.40 level while trading just above the 50 DMA.

US Dollar Index News

Gold: the $1,470 regions caps the upside

Prices of the precious metal keep the positive performance in the second half of the week, although the $1,470 region continues to cap the upside for the time being.

Gold News

Forex Majors

Cryptocurrencies

Signatures