AUD/USD Current Price: 0.6761
- US-China trade hopes helped the Aussie trim weekly losses.
- AUD/USD could extend its advance, but the long-term bearish trend remains intact.
The Australian dollar has fallen to a fresh weekly low of 0.6709 before posting a nice come back that trimmed the last three-days’ losses. The pair started the day falling amid mounting trade tensions between the US and China, and in spite of some robust local data. According to the official report, Home Loans were up by 1.8% in August, while Investment Lending for Homes increased by 3.2% in the same month. Most of the pair’s gains came within US trading hours, as the greenback was hit by positive headlines related to the US-China trade relationship, as both economies seem to be heading into some kind of deal. Australia will release this Friday RBA’s Financial Stability Review.
AUD/USD short-term technical outlook
The AUD/USD pair is stuck around its weekly opening, with a modestly bullish tone in the short-term, as, in the 4 hours chart, the pair has overcome a bearish 100 SMA for the first time this month, while the 20 SMA is attempting a shy recovery below the larger one. Technical indicators in the mentioned chart remain within positive levels, the Momentum advancing modestly and the RSI consolidating at around 60. The long term picture, however, continues to favor the dominant bearish trend.
Support levels: 0.6700 0.6670 0.6625
Resistance levels: 0.6770 0.6805 0.6840
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