AUD/USD Forecast: Aussie up with gold and equities recovering

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7777

Spot gold underpinned the aussie, surging to its highest since mid-February.
Australia won’t publish relevant data until next Tuesday, the focus will be on Chinese data.
AUD/USD bounced from the bottom of its range, but its bullish potential is limited.

The AUD/USD pair recovered some ground on Friday but fell short of trimming weekly losses, settling in the 0.7770 price zone. The aussie benefited from the better market mood that sent equities and gold prices higher. The bright metal surged to $ 1,845.88 a troy ounce, its highest since February, ending the week at 1,843.

Australia did not publish relevant macroeconomic data at the end of the week, and its calendar will remain empty until Tuesday when the RBA will publish the Minutes of its latest meeting. On Monday, the focus will be on China, as the country will release April Retail Sales and Industrial Production, expected to have advanced at a slower pace than in March.

AUD/USD short-term technical outlook

The AUD/USD pair is neutral-to-bullish according to the daily chart, as buyers still defend the 0.7700 region. The daily chart shows that technical indicators hover within neutral levels, with the Momentum lacking directional strength. A mildly bullish 100 SMA provides support, while the pair settled above a flat 20 SMA. In the 4-hour chart, the pair develops above all of its moving averages, although the 20 SMA maintains its bearish slope. Technical indicators head nowhere, with the RSI at around 54 and the Momentum below its midline. Bulls may have better chances if the pair breaks above 0.7820.

Support levels: 0.7730 0.7690 0.7650

Resistance levels: 0.7820 0.7860 0.7900

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.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.