AUD/USD Analysis: steady below 0.6900

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6883

Australian growth to remain sluggish in the second half of the year.
Bearish case remains strong despite the lack of short-term momentum.

The AUD/USD pair had little life of its own this Wednesday, having spent the day within a tight 30 pips' range. A modest uptick took place during London trading hours, as European indexes kick-started the day with a positive tone, although it didn't last amid renewed tensions between the US and China. The decline in European and American indexes, however, fell short of triggering additional Aussie selling. Earlier in the day, Australia released the Westpac Leading Index, which showed that the country's economic growth will likely remain sluggish into the second half of the year, with the index falling to -0.1%, following March's 0.3% advance. Australian macroeconomic calendar will remain empty this Thursday.

The AUD/USD pair trades unchanged daily basis in the 0.6880 price zone and barely holding above the multi-month low set last week at 0.6864. The short-term picture shows that the bearish momentum eased, although there are no signs that the pair could recover ground any time soon. Technical readings in the 4 hours chart indicate that the risk remains skewed to the downside, as the pair was unable to recover beyond its 20 SMA, which lacks directional strength while developing well below the larger moving averages, which maintain their bearish slopes. Technical indicators in the mentioned chart stand in negative ground, lacking certain directional strength.

Support levels: 0.6865 0.6825 0.6775

Resistance levels: 0.6905 0.6930 0.6965

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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