AUD/USD Forecast: Busy day in Australia

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7163

Australia will publish this Wednesday, August Retail Sales and September Commonwealth PMIs.
RBA’s Deputy Governor Debelle said that rate intervention is a policy option.
AUD/USD has turned bearish in the short-term, could fall below 0.7100.

The AUD/USD pair fell to 0.7153, its lowest in almost a month, as the dollar continued to gather momentum across the board. A modest advance in European and American stocks was not enough to keep the Aussie afloat. At the beginning of the day, RBA Deputy Governor Guy Debelle said that it is plausible that the worst is behind when referring to the economy. However, he also noted that a lower exchange rate would be beneficial for the local economy, indicating that intervening in the FX market is another policy option.

Wednesday will start with Australia publishing the preliminary estimate of August Retail Sales, and the Commonwealth Bank PMIs. Manufacturing activity and services output are both expected to have shrunk in the month into contraction territory.

AUD/USD short-term technical outlook

The AUD/USD pair is trading in the 0.7160 price zone and could extend its slump during the upcoming hours, particularly if it remains unable to recover beyond the 0.7200 level. The 4-hour chart shows that the pair is developing below all of its moving averages, with the 20 SMA accelerating below the 100 SMA and about to cross below the 200 SMA. Technical indicators remain near oversold readings but pared their declines.

Support levels: 0.7130 0.7085 0.7040

Resistance levels: 0.7190 0.7220 0.7260

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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