AUD/USD Forecast: Bouncing from the lower end of the range

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7763

The Reserve Bank of Australia is widely anticipated to maintain its monetary policy unchanged.
Australian manufacturing output rose at a solid pace in April according to the PMIs.
AUD/USD pressures daily highs amid substantial gains in equities and gold.

The AUD/USD pair gapped higher at the weekly opening, extending its recovery as the day went by to as high as 0.7765, holding nearby as the day comes to an end. The aussie benefited from a stocks comeback and resurgent gold prices. The bright metal peaked at $ 1,797.91 a troy ounce, before retreating modestly.

Data wise, Australia published the April AIG Performance of Manufacturing Index, which came in at 61.7, improving from 59.9. The Commonwealth Bank Manufacturing PMI for the same month resulted at 69.7, beating expectations. Finally, April TD Securities Inflation rose 0.4% MoM and 2.3% YoY.

During the upcoming Asian session, the Reserve Bank of Australia will announce its monetary policy decision. Australian policymakers are widely anticipated to leave the current policy unchanged, although there are mounting hopes that they will upwardly review their outlooks, on the back of recent upbeat data. Still, a cautious statement is anticipated on the back of moderate inflation.

AUD/USD short-term technical outlook

The AUD/USD pair pressures the mentioned daily high, but near-term technical readings fall short of confirming a bullish continuation. The 4-hour chart shows that the pair is currently above all of its moving averages, which anyway lack directional strength. The RSI indicator heads modestly higher at around 53, while the Momentum retreats after failing to overcome its midline. The pair has bounced from the lower end of its latest range, holding below the critical 0.7820 resistance, the level to surpass to gain further ground.

Support levels: 0.7730 0.7690 0.7650

Resistance levels: 0.7775 0.7820 0.7859

View Live Chart for the AUD/USD

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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.

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