AUD/USD Forecast: Bulls in control despite tepid Australian data

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7189

Australian AIG Performance of Manufacturing Index contracted to 46.7 in September.
August Retail sales in the country are foreseen at -4.2% as previously estimated.
AUD/USD holds on to daily gains could extend its rally beyond 0.7210.

The AUD/USD pair reached a fresh weekly high of 0.7208, pulling back from the level during US trading hours to end the day with modest gains in the 0.7180 price zone. Australian data was pretty discouraging, as the AIG Performance of Manufacturing Index contracted to 46.7 in September from 49.3 in the previous month. The final version of the Commonwealth Bank Manufacturing PMI for the same month resulted in 55.4 from 55.5. The country will publish August Retail Sales foreseen at -4.2% as previously estimated.

AUD/USD short-term technical outlook

From a technical point of view, the AUD/USD pair retains its bullish bias despite easing from intraday highs. The 4-hour chart shows that it keeps developing above a bullish 20 SMA while selling interest rejected the advance around a flat 100 SMA. Technical indicators in the meantime, are retreating from overbought readings, but holding well above their midlines. The rally could extend on a break above 0.7210, now the immediate resistance level.

Support levels: 0.7140 0.7100 0.7060

Resistance levels: 0.7210 0.7250 0.7290

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 extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

Litecoin eyes $50 as heavy losses weigh on investors

Following a strong downtrend across the crypto market over the past week, Litecoin holders are under immense pressure. The Bitcoin fork has trimmed about $1.81 billion from its market capitalization since the beginning of the year, sending it below the top 20 cryptos by market cap.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.