AUD/USD Analysis: short-term neutral, upside well-limited

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7100

China January trade data to lead the way during the Asian session.
Aussie failed to rally despite the strong performance of equities.

The AUD/USD pair surged at the beginning of the day up to 0.7135, but trimmed daily gains ahead of the US close, settling around the 0.7100 level. The Aussie was supported by the positive mood reflected by Asian equities' advance also by a soaring NZD after the RBNZ was less dovish than expected. However, the pair's advance was quite shallow, considering that stocks' momentum extended into the following sessions, anyway not enough to offset dollar's broad demand. During the upcoming Asian session, China will release its January Trade Balance, with the focus on exports and imports, both seen declining in dollar terms. There won't be macroeconomic news coming from Australia.

The pair is short-term neutral, trading above its 20 SMA but below the 100 and 200 SMA in the 4 hours chart, all of them lacking directional strength. The Momentum indicator in the mentioned chart heads nowhere around its 100 level, while the RSI returned to bearish territory, maintaining its downward slope around 48. The Aussie has little room for a steady bullish run, with spikes probably continue to attract selling interest.

Support levels: 0.7070 0.7030 0.7000

Resistance levels: 0.7145 0.7190 0.7225

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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