AUD/USD Forecast: Bulls still reluctant to push aussie higher

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7288

Australian manufacturing and services output improved by more than expected in November.
Gold prices plunged to $1,830.00 a troy ounce, weighing on the aussie.
AUD/USD retreated from the 0.7340 price zone for a third time this month.

The AUD/USD pair traded as high as 0.7336, failing once again to surpass the 0.7339 monthly high. It fell to 0.7264 with upbeat US data, now heading into the Asian opening trading around 0.7280. The commodity-linked currency was also weighed by the soft tone of gold, as the bright metal plunged to a fresh 4-month low of 1,830.82 a troy ounce.

Australian data published at the beginning of the day resulted upbeat, as the preliminary November Commonwealth Bank Manufacturing PMI improved to 56.1 from 54.2, while the services index for the same month surged to 54.0 from 53.7. This Tuesday, Australia will publish the October Trade Balance preliminary estimate, previously at 5630M.

AUD/USD short-term technical outlook

The AUD/USD pair is neutral in the near-term, and according to the 4-hour chart. In the mentioned time-frame, the pair is currently below a directionless 20 SMA but still above a bullish 100 SMA. Technical indicators eased from their intraday highs, with the Momentum heading lower just above its 100 level and the RSI stable around 45. A short-term bearish extension is likely on a break below 0.7250, the immediate support level.

Support levels: 0.7250 0.7210 0.7170

Resistance levels: 0.7300 0.7345 0.7380

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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