AUD/USD Forecast: Bulls losing interest after dismal GDP figures

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6850

Australian data resulted softer than anticipated, weighing on the Aussie.
A modest improvement in the market’s sentiment helped the pair to remain afloat.
AUD/USD could turn bearish on a break below the 0.6800 figure.

The Australian dollar has fallen during Asian trading hours against all of its major rivals, following the release of the Gross Domestic Product estimate for the three months to September, which rose by 0.4%, missing the market’s expectations of a 0.5% advance. The yearly estimate came as expected at 1.7%. Also, the AIG Performance of Services Index shrank to 53.7 in November from 54.2 in October. The Commonwealth Bank Services PMI for the same month improved to 49.7. The AUD/USD pair fell to 0.6812, but bounced to settle around 0.6850, helped by a better market mood, as equities recovered on the back of headlines suggesting the US and China are still working on a trade deal.

Australia will release its October Trade Balance during the upcoming Asian session, with the market expecting a surplus of 6100M.

AUD/USD short-term technical outlook

The AUD/USD pair is holding at the upper end of its latest range, although chances that it could extend its rally have somehow decreased. In the 4 hours chart, the pair continues developing above all of its moving averages. Technical indicators eased, still near overbought readings although posting lower highs daily basis, a sign that bulls are losing interest. The pair, however, would only turn bearish on a break below the 0.6800 figure.

Support levels: 0.6800 0.6770 0.6730

Resistance levels: 0.6865 0.6890 0.6920

View Live Chart for the AUD/USD

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.

AUD/USD sits at three-week highs above 0.7000 on hawkish RBA-speak

AUD/USD holds a positive bias for the fourth straight day, trading above 0.7000 in the Asian session on Wednesday and at three-week highs. RBA Deputy Governor Andrew Hauser's hawkish remarks and inflation concerns underpin the pair. However, the upside appears capped as the US Dollar attracts some buyers amid looming US-Iran uncertainty.

USD/JPY remains confined in a familiar range below 158.50

USD/JPY sees some dip-buying in the Asian session on Wednesday, though it remains confined within a multi-week range near 158.50 as the uncertainty over the timing of the next BoJ rate hike keeps Japanese Yen bulls on the defensive. Meanwhile, hawkish Fed expectations, bolstered by inflation risks stemming from volatile oil prices, underpin the US Dollar. However, looming intervention fears could limit JPY losses and cap the currency pair.

Gold struggles near weekly low near $4,100 amid USD bounce

Gold remains depressed for the fourth straight day, flirting with the weekly low during Wednesday’s Asian session, with bears awaiting a sustained break below $4,100 before placing fresh bets. Energy-driven inflation fears keep Fed hike bets firmly on the table, reviving US Dollar demand and undermining the non-yielding bullion. However, an unconfirmed report of US-Iran diplomacy could cap the safe-haven buck, which could offer some support to the precious metal.

Ethereum bounces off $2,400 for a sixth day despite ETF outflows

Ethereum (ETH) bounced again near the $2,400 level on Tuesday, the sixth straight day, as its on-chain cost basis and key moving averages have stood as key support levels. The sub-$2,400 level has proven to be a strong support for the top altcoin over the past week amid macro pressures. Buyers have repeatedly stepped in to defend prices whenever it falls below the level.

UK CPI set to accelerate, paving the way for a BoE interest rate hike in November

The United Kingdom Office for National Statistics is expected to release September’s Consumer Price Index on Wednesday at 06:00 GMT. These figures will be accompanied by the Producer Price Index and the Retail Sales report.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.