AUD/USD Forecast: Bullish potential intact despite lack of follow-through

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7363

Australian Construction Work Done contracted by more than expected in Q3.
The poor performance of equities limited the upside for the AUD.
AUD/USD retains its neutral-to-bullish stance in the near-term.

The AUD/USD pair held around 0.7360 this Wednesday, trapped between the broad greenback´s weakness and the equities’ poor performance. The pair extended its monthly rally by a few pips, reaching 0.7373. Australia published at the beginning of the day Q3 Construction Work Done, which came in at -2.6%, worse than the -2% expected. During the upcoming Asian session, the country will publish Q3 Private Capital Expenditure, foreseen at -1.5%.

AUD/USD short-term technical outlook

From a technical point of view, the upside remains favored for the AUD/USD pair. The 4-hours chart shows that a bullish 20 SMA continued to provide intraday support, now around 0.7330. Technical indicators remain flat but within positive levels while the 100 and 200 SMAs have accelerated north well below the current level. A steeper advance should be expected on a break above 0.7413, this year’s high.

Support levels: 0.7330 0.7290 0.7250

Resistance levels: 0.7370 0.7415 0.7540

View Live Chart for the AUD/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.