AUD/USD Forecast: Bulls in charge, 0.7500 at sight

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7366

Gold’s advance and Wall Street’s rally underpinned the Aussie.
China’s official August PMIs are seen worsening from July’s readings.
AUD/USD is bullish despite overbought, could extend its rally in the near-term.

The AUD/USD pair surged to 0.7366 last Friday, a level that was las seen in December 2018. The persistent weakness of the American currency alongside Wall Street’s advance were behind the pair’s run. The Australian macroeconomic calendar was quite scarce last week, leaving the pair to flow on dollar’s demand or the absence of it. Another factor backing the Aussie was gold, as the bright metal closed the week in the green at $1,964 a troy ounce, after falling in the previous two weeks.

This Monday, Australia will release several reports, although the only relevant is August TD Securities Inflation, previously at 1.3% YoY. Additionally, China will publish the official NBS Manufacturing PMI for August, seen at 48.7 from 51.1 in the previous month, and the Non-Manufacturing PMI, expected at 52.1 from 54.2 in July.

AUD/USD short-term technical outlook

The AUD/USD pair is heading into the weekly opening trading at the mentioned high, and bullish according to technical readings. In the daily chart, the pair has extended its advance above a still flat 20 DMA, while the longer ones keep advancing below it. Technical indicators, in the meantime, head firmly north at August highs. In the 4-hour chart, the pair is trading far above bullish moving averages, while technical indicators maintain their strong bullish slopes in extreme overbought readings.

Support levels: 0.7325 0.7290 0.7245

Resistance levels: 0.7400 0.7440 0.7475

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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