AUD/USD analysis: wait-and-see mode above 0.7200

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7218

The RBA revised growth forecasts for this year and the next to average 3.5%.
Aussie quiet ahead of US elections' result, overall bullish.

The AUD/USD pair reached a daily high of 0.7240, as a hawkish RBA gave the Aussie support, although fell short of spurring solid demand. The Australian Central Bank left rates unchanged at 1.5% as largely anticipated, with policymakers confident on growth, employment and inflation. Growth forecasts have been upwardly revised for this year and the next one, "to average around 3.5% over these two years," RBA Governor Lowe said. Australia will release the AIG Performance of Construction Index for October, previously at 49.3.

The pair is comfortable above the 61.8% retracement of its September/October decline, which left doors open for a full retracement up to 0.7314, the high achieved on September 26. Short-term technical readings lean the scale toward the upside, although the positive momentum is limited, as the price is currently above its 20 SMA, which has partially lost its upward strength, while the Momentum indicator turned higher within neutral readings. The RSI indicator pulled back from overbought readings, now flat around 62. The key is the 0.7250 region, a strong static resistance area that the pair already tested last week.

Support levels: 0.7200 0.7165 0.7120

Resistance levels: 0.7250 0.7290 0.7315

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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