AUD/USD analysis: up for a second consecutive day

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7549

AUD/USD gained despite increased dollar's demand.
Westpac confidence index to set the tone in the short term.

The AUD/USD pair closed the day with gains a 0.7549, but off a weekly high of 0.7579 achieved during London trading hours. Aussie's early gains could be attributed to a firm trend in Asian currencies at the beginning of the day, led by the NZD, which surged over 1.0% after Adrian Orr was named as the next governor of the Reserve Bank, seen as more hawkish than actual Wheeler. Higher oil prices also helped it gain, although the commodity plunged later on the day, coupling with dollar's strength to force the downward movement. Australia will release December Westpac confidence indexes, while Governor Lowe is set to speak at the beginning of the day, although not particularly on monetary policy. More relevant will be Thursday's employment data. From a technical point of view, the 4 hours chart shows that, despite the latest intraday decline, the risk of a downward extension remains limited, as the price holds above a modestly bullish 20 SMA, while technical indicators have entered a consolidative phase within positive territory. The 0.7530 region is the immediate support, with a break below it probably resulting in the pair resuming its bearish trend.

Support levels: 0.7530 0.7500 0.7450

Resistance levels: 0.7600 0.7640 0.7645

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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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