AUD/USD Forecast: At fresh lows and set to continue falling

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7063

The Reserve Bank of Australia will publish the minutes of its latest meeting.
Chinese data indicating economic growth provided support to the Australian currency.
AUD/USD is accelerating its decline on US trading hours and approaching 0.7050 support.

The AUD/USD pair hit a daily high of 0.7100 but trimmed intraday gains and trades around 0.7060 ahead of the Asian opening. The Australian currency found support at the beginning of the day on Chinese data, as the country’s Q3 GDP came in at 4.9%, below the 5.2% expected but better than the previous 3.2% Industrial Production and Retail Sales in the country improved by more than anticipated in September, indicating steady growth in the country. The pair fell during US trading hours, following Wall Street’s lead, as US major indexes plunged on headlines indicating that no progress has been made in the US on a coronavirus aid package.

This Tuesday, the focus is on the Reserve Bank of Australia, as the central bank will publish the minutes of its latest meeting. The People Bank of China will also set rates this Tuesday.

AUD/USD short-term technical outlook

The AUD/USD pair plunged to daily lows around 0.7060, where it trades at the time being. The 4-hour chart shows that the bearish case is still strong, as sellers rejected the early advance around a firmly bearish 20 SMA. This last keeps falling below the larger ones. Technical indicators in the mentioned time-frame turned lower, the Momentum around its midline, and the RSI at around 35, supporting another leg south in the near-term.

Support levels: 0.7050 0.7020 0.6980

Resistance levels: 0.7100 0.7130 0.7170

View Live Chart for the AUD/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.