AUD/USD Forecast: Aussie points to 0.6600
AUD/USD Current Price: 0.6558
- RBA will release the meeting minutes, and Governor Bullock is scheduled to speak.
- The Australian Dollar continues to benefit from risk appetite.
- The AUD/USD achieves its highest daily close in three months.
The AUD/USD rose for the second day in a row and posted its highest daily close in three months after breaking clearly above 0.6520. The bias remains to the upside, supported by a weaker US Dollar and risk appetite. Additionally, technical factors contribute to the bullish momentum.
On Tuesday, the Reserve Bank of Australia (RBA) will release the minutes of its latest meeting, which are not expected to bring significant surprises. RBA Governor Michele Bullock will participate in a panel discussion about the state of the economy in Melbourne. Investors will closely watch her words, especially after the central bank's rate hike earlier in November.
The USD continues to decline as market participants believe the Federal Reserve is done raising interest rates. US yields have edged modestly lower, and Wall Street indices have reached new monthly highs, adding pressure to the Greenback. The context shows potential for further downside in the value of the US Dollar. On Tuesday, the Federal Reserve will release the minutes of its latest meeting.
AUD/USD short-term technical outlook
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The AUD/USD broke clearly above the 0.6520 resistance area and climbed to 0.6565 before losing some momentum. The pair is currently consolidating near the top, reflecting that the positive momentum remains intact. The next critical resistance level to watch is around 0.6600, which is a horizontal area and the 200-day Simple Moving Average (SMA).
The 4-hour chart indicates some consolidation ahead, with the Relative Strength Index (RSI) stabilizing around 70 and the Momentum turning modestly lower. However, the Moving Average Convergence Divergence (MACD) is giving bullish signals. As of the Asian session, the bias remains tilted to the upside, and further gains are likely as long as the price stays above 0.6505.
Support levels: 0.6535 0.6520 0.6445
Resistance levels: 0.6565 0.6600 0.6625
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Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
