AUD/USD analysis: retreating from 1-month high

AUD/USD Current price: 0.7979

The AUD/USD pair surged up to 0.8028, its highest in over a month, but was unable to sustain gains beyond the 0.8000 mark, ending the day around 0.7980, despite the broad negative stance of the greenback. The RBA had its monetary policy meeting at the beginning of the day, leaving rates unchanged at record lows of 1.5% for the 13th consecutive month, as largely expected. However, the statement was a bit more optimistic on economic growth, underpinning the commodity-related currency. Additionally, the Chinese Caixin services PMI, showed that the sector expanded by the most in three months in August, with the index up to 52.7 from 51.5. Plummeting US indexes helped the pair to retreat in the US afternoon. The 4 hours chart shows that the price is anyway holding above a bullish 20 SMA and the 61.8% retracement of the July/August decline at 0.7965, now the immediate support. Technical indicators in the mentioned chart have retreated sharply from overbought readings, now approaching their mid-lines. It would take a break below the mentioned Fibonacci support, to confirm a downward extension for this Wednesday.

Support levels: 0.7965 0.7935 0.7900

Resistance levels: 0.8000 0.8030 0.8065

View Live Chart for the AUD/USD

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