AUD/USD Current Price: 0.7080

  • RBA’s Governor Philip Lowe hinted a possible rate cut in the near-term to support jobs growth.
  • The focus shifts to Chinese Industrial Production and Retail Sales, seen up in September.
  • AUD/USD is bearish and could break below the 0.7000 threshold.

The AUD/USD pair consolidated its weekly losses on Friday, finishing the day at 0.7080, its lowest daily settlement for this October. The Australian dollar was quite resilient to demand for the greenback but took a hit from Reserve Bank of Australia’s Governor Philip Lowe, who hinted a possible rate cut in the near-term, meant to support jobs growth and alleviate currency pressures within the current pandemic context. A better market mood ahead of the weekly close limited the bearish potential of the pair.

Australia won’t publish relevant data this Monday, with the focus on Chinese macroeconomic figures. The country will publish September Industrial Production, foreseen at 5.8% YoY and Retail Sales for the same month, seen improving from 0.5% to 1.8% YoY.

AUD/USD short-term technical outlook

 The AUD/USD pair daily chart offers a neutral-to-bearish stance, as the pair is trading around a bullish 100 DMA but below a bearish 20 DMA. The Momentum remains neutral, heading south around its midline, while the RSI is currently at 40, skewing the risk to the downside. In the shorter-term, and according to the 4-hour chart, the pair is firmly bearish, as it settled far above all of its moving averages, with the 20 SMA extending its decline below the larger ones. Technical indicators, in the meantime, have turned south within negative levels, reflecting the strong selling interest around the pair.

Support levels: 0.7050 0.7020 0.6980

Resistance levels: 0.7130 0.7170 0.7205

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

AUD/USD: Consolidates heaviest gains in two weeks above 0.7100 amid cautious optimism

AUD/USD eases from weekly high of 0.7137 marked on Wednesday. Virus woes, dovish tone of Fed’s Bullard also probe the optimists. RBA’s Debelle, NAB Business Confidence will offer immediate direction, risk news remain as the main driver.

AUD/USD News

USD/JPY: Steeper decline expected once below 104.00

The USD/JPY pair finally woke up from its lethargy, plummeting on dollar’s sell-off. Sellers ignored a modest Wall Street’s advance and higher US Treasury yields. USD/JPY is trading at fresh monthly lows with no signs of bearish exhaustion.

USD/JPY News

Gold bulls await fresh clues to probe monthly top below $1,950

Gold buyers catch a breather above $1,920 after posting the biggest gains in a fortnight. COVID-19 data from US states, Victoria propel fears of wider wave 2.0. US Initial Jobless Claims, aid package updates will be the key.

Gold News

WTI: Buyers lurk around 100-day EMA

WTI bounces off $39.83, the lowest in one week, to battle 50% Fibonacci retracement. EIA inventories recovered from -3.818M prior, -1.021M forecast. The energy benchmark dropped the lowest since October 15 the previous day.

Oil News

2020 Elections: Trump is is showing signs of a comeback, will the dollar follow?

"It ain't over till the fat lady sings" – goes the adage which is relevant for the 2020 Presidential Elections as well. Two weeks ahead of election day, there are signs that incumbent Donald Trump is clawing back some support, raising the chances that the race could drag on for longer.

Read more

Forex Majors

Cryptocurrencies

Signatures