AUD/USD Forecast: Comfortable just below 0.7000

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6949

Tensions between China and Australia continue to weigh on the Aussie.
The number of new coronavirus contagions in Australia remains on the rise.
AUD/USD is technically neutral, unable to gain momentum beyond the 0.70 threshold.

The Australian dollar eased for a second consecutive day against its American rival, ending the week unchanged at around 0.6950. The pair fell to 0.6923 at the beginning of the day, amid tensions between China and Australia and a dismal market mood. By the end of last week, Australia announced the suspension of its extradition treaty with Hong Kong in response to China’s decision to impose new national-security legislation, further mounting tensions between the two countries. The pair bounced from the mentioned low during the last trading session of the week, helped by the better performance of Wall Street, although unable to turn positive for the day.

Australia won’t release macroeconomic data this Monday, with the focus on the weekend coronavirus-related headlines. The state of Victoria reported 273 new cases of COVID-19 this Sunday, while the country also reported a community outbreak in New South Wales. Nevertheless, the country reported just one new death over the weekend, taking the national toll to 108.

AUD/USD short-term technical outlook

The AUD/USD pair remains unable to take over the 0.7000 threshold. The daily chart shows that it continues to comfortably consolidate ahead of the mentioned level, retaining its neutral stance. The daily chart shows that a horizontal 20 SMA provides support around the 0.6900 level, as technical indicators ease within positive levels. In the shorter-term, and according to the 4-hour chart, the pair is also neutral, as it’s trading between directionless moving averages, as technical indicators head nowhere around their midlines.

Support levels: 0.6895 0.6850 0.6810

Resistance levels: 0.6995 0.7020 0.7060

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.

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