AUD/USD Forecast: Aussie helped by resilient Australian data

AUD/USD Current Price: 0.6981

• The Australian Trade Balance posted a A$17.67 billion surplus in June.
• The Reserve Bank of Australia will publish the Monetary Policy Statement.
• AUD/USD is set to extend its advance, particularly on a break above 0.6990.

The Australian dollar advanced for a second consecutive day against its American rival to reach an intraday high of 0.6989, heading into the Asian session a few pips below it. The pair advanced on the broad greenback’s weakness but was also helped by upbeat Australian data. The June Trade Balance posted a $A 17.67 billion surplus, beating the market’s expectations. In the same month, exports were up by 5.1% while imports increased by 0.7%.

Australia will publish the July AIG Performance of Services Index on Friday, previously at 48.8. Additionally, the Reserve Bank of Australia will issue the Monetary Policy Statement.

AUD/USD short-term technical outlook

The AUD/USD pair hovers around the 50% retracement of its latest daily slide measured between 0.7282 and 0.6680 at 0.6980. The daily chart shows that the bullish potential is limited and the risk is skewed to the upside. The 20 SMA advances below the current level, while technical indicators remain within positive levels, lacking apparent directional strength.

In the near term, and according to the 4-hour chart, chances are also of a bullish extension, particularly if the pair advances above 0.6990. Technical indicators crossed above their midlines, maintaining mildly bullish slopes. At the same time, the pair is trading above all of its moving averages, with the 100 SMA crossing above the 200 SMA, usually a sign of increased buying interest.

 Support levels: 0.6955 0.6910 9.6875

Resistance levels: 0.6990 0.7025 0.7060

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