AUD/USD Analysis: relief bounce fell short of affecting trend

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6793

Australian NAB’s confidence indexes beat expectations, but trade news lifted the Aussie.
Chinese Retail Sales and Industrial Production data up next.
AUD/USD held below the 0.6800 figure despite a better market mood.

The AUD/USD pair got lifted by comments from the US Trade Representative, Lighthizer, announcing that some of the latest of tariffs on China announced by US President Trump will be delayed until mid-December. The news helped Wall Street recover the ground lost Monday and further, with the Dow Jones Industrial Average up over 400 points for the day which in turn, pushed the pair higher. At the beginning of the day, Australia released the NAB’s Business Business Conditions index for July, which came in at 2, better than the 1 expected. The NAB’s Business Confidence index was also upbeat, resulting for the month at 4.

During the upcoming Asian session, Australia will release the quarterly Wage Price Index, seen unchanged at 0.5% QoQ, and Westpac Consumer Confidence for August, previously at -4.1%. More relevant, China will release Industrial Production and Retail Sales for July, both seen in positive levels, although below June’s readings.

AUD/USD short-term technical outlook

The AUD/USD pair is short-term neutral, according to technical readings in the 4 hours chart, as it settled a few pips above a flat 20 SMA, while technical indicators faltered around their mid-lines, the Momentum resuming its decline below its 100 level and the RSI now flat at around 55. The intraday advance stalled at 0.6817, with the pair having retreated from the 0.6810 price zone also last week, making of it a relevant resistance area. Another attempt beyond the level could see it approaching the 0.6900 figure before sellers could decide to add to long-term shorts.

Support levels: 0.6740 0.6700 0.6675

Resistance levels: 0.6815 0.6840 0.6880

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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