AUD/USD Current Price: 0.6889

  • A trade deal between the US and China likely to limit the downside for the pair.
  • Australia will release the preliminary estimates of the December PMI.
  • AUD/USD retreated sub-0.6900 but holds above the critical 0.6865 support.

The AUD/USD pair surged on Friday to its highest in over 4-month, printing 0.6938 before retreating. The early momentum was the result of UK PM Johnson´s victory and hopes for a US-China trade deal. The agreement was announced by the end of the US session, boosting the greenback and dragging the pair sub-0.6900. Nevertheless, it closed with gains for a second consecutive week, and risk-appetite should keep the downside limited even in the case of dollar’s persistent strength.

This Monday,  Australia will release the preliminary December Commonwealth Bank Manufacturing PMI, foreseen at 50.4 from the previous 49.9, and the Services PMI, expected at 49.1 from 49.7 previously.  China will publish November Industrial Production expected to have risen by 5.0% and Retail Sales for the same month, seen up by 7.6%.

AUD/USD short-term technical outlook

The daily chart for the AUD/USD pair shows that it failed to hold ground above a bearish 200 SMA, this last around 0.6905. The 20 DMA is barely above the 100 DMA, both around 0.6800, lacking clear directional strength. Technical indicators have retreated from overbought readings,  suggesting the pair may have hit an interim top, to be confirmed if the current decline continues sub-0.6865 a former relevant resistance level. In the 4-hour chart, the pair stalled its decline around a bullish 20 SMA, which remains above the larger ones, while technical indicators retreated sharply from overbought readings to stabilize in neutral levels, falling short of confirming a downward movement ahead.

Support levels: 0.6865 0.6830 0.6800

Resistance levels: 0.6900 0.6935 0.6970  

View Live Chart for the AUD/USD

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD trims intraday gains returns to mid-1.17

The EUR/USD pair retreated after flirting with the 1.1800 figure, as the market mood somehow turned sour. Focus on the next US fiscal relief package, coronavirus, and economic progress.

EUR/USD News

GBP/USD approaches 1.3000 once again

GBP/USD is easing towards weekly lows as dollar bulls are giving it another try. Brexit concerns and UK lockdowns in the eye of the storm.

GBP/USD News

XAU/USD bull-bear tug-of-war extends around $1975

XAU/USD sidelined heading into the European session. Downside limited by dollar weakness, coronavirus concerns. Focus remains on the USD dynamics and the United States/China updates.

Gold News

What you need to know about trading in August

The generally received wisdom is that summer is a quiet month for trading. Traders are on holiday and markets quieten down. That’s the expectation among many. However, the reality is that August can be one of the most volatile trading months of the year.

Read more

WTI: Bulls await API data to attack $41.00

WTI struggles to extend recovery moves from $40.74 beyond $41.00. Virus woes join OPEC output increase to combat drop in Russian oil production. US Factory Orders, API inventories will be the key.

Oil News

Forex Majors

Cryptocurrencies

Signatures