AUD/USD Forecast: Corrective bounce from 0.7000 threshold

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7031

NAB’s Business Confidence improved to -10 in Q3 from -15 previously.
Wall Street’s modest advance helped AUD/USD to recover some ground.
AUD/USD is still at risk of falling in the near-term.

The AUD/USD pair fell to 0.7001, its lowest since late July, as risk aversion fueled demand for the greenback. Australia published at the beginning of the day Q3 NAB’s Business Confidence, which came in at -10 from -15. The country also published the Import Price Index for the same period, that came in worse than expected as it fell by 3.5% in the three months to September. Export prices declined by 5.1%.

Upbeat US data put a halt to equities’ collapse, with Wall Street posting intraday advances and helping the pair to recover to the current 0.7030 price zone. The Australian macroeconomic calendar will be light this Friday, as the country will only publish minor figures, September Private Sector Credit and the Q3 Producer Price Index.

AUD/USD short-term technical outlook

The AUD/USD pair has corrected oversold conditions, but the risk remains skewed to the downside, according to intraday technical readings. The 4-hour chart shows that the pair is developing below all of its moving averages, with the 20 SMA accelerating south below the larger ones. Technical indicators have barely bounced from oversold readings, but lack strength enough to support a bullish continuation.

Support levels: 0.6990 0.6950 0.6910

Resistance levels: 0.7070 0.7110 0.7160

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 hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.