AUD/USD Forecast: A test of the critical 0.7000 level at sight
AUD/USD Current Price: 0.7095
- Australian October Trade Balance posted a surplus of $11.22 billion, beating expectations.
- Gold extended its decline to a fresh one-month low, weighing on the aussie.
- AUD/USD trades sub-0.7100 and could extend its slump on Friday.
The AUD/USD pair fell to 0.7084, holding a few pips above the level heading into the Asian opening. The aussie fell despite the better performance of US equities, weighed by lower gold prices, while demand for the American dollar was underpinned by upbeat employment data. Wall Street advanced after encouraging US employment-related data, although the greenback also benefited from higher government bond yields.
Macroeconomic figures from Australia were mixed, as the October Trade Balance posted a surplus of $11.22 billion, beating expectations. However, Home Loans in the same month declined 4.1% MoM. On Friday, the country will release the November AIG Performance of Construction Index and the Commonwealth Bank Services PMI for the same month. Later in the day, the US will publish the Nonfarm Payrolls report, expected to post a solid 550K headline.
AUD/USD short-term technical outlook
The daily chart for the AUD/USD pair points to a bearish continuation, as the pair fell further below its moving averages, while technical indicators accelerated their declines. The same chart shows that the pair is extremely oversold, although there are no signs suggesting a directional change. The 4-hour chart also hints at further declines, as the pair remained below bearish moving averages, while technical indicators hold within negative levels with uneven strength.
Support levels: 0.7060 0.7015 0.6970
Resistance levels: 0.7140 0.7175 0.7210
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.
