AUD/USD analysis: short-term bullish near key resistance area

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7430

Aussie finding support in the positive tone of equities, dollar's weakness.
AUD/USD topped in the 0.7440/50 region in the past three weeks.

The AUD/USD pair closed at 0.7430, a few pips below a daily high of 0.7443, underpinned by dollar's weakness and the positive tone of equities. The Aussie plunged at the beginning of the week, following an unsurprising RBA and soft housing data that suggested rates will remain at record lows at least until 2020, and trade tensions between China and the US. The commodity-linked currency, however, later recovered as equities' traders shrug off concerns about a trade war, while the greenback fell out of market's favor. AUD/USD traders will pay attention to Chinese headlines this week, as the country will release June inflation among other figures. Next Tuesday, Australia will release the NAB's business confidence and conditions indexes, seen improving in June from May's readings. The daily chart for the pair shows that it settled above a bearish 20 SMA and well below bearish 100 and 200 SMA, while technical indicators head north, the Momentum above its mid-line but the RSI currently at 49, somehow indicating a limited upward potential. In the 4 hours chart, the upside seems more constructive, as the pair settled above its 20 and 100 SMA, with the shorter crossing above the larger one, as technical indicators hold well above their midlines, barely losing upward strength near overbought levels. The pair topped in the 0.7440/50 region in the past three weeks, with a break above it needed to confirm additional gains ahead.

Support levels: 0.7400 0.7370 0.7335

Resistance levels: 0.7445 0.7480 0.7510

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.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.