AUD/USD Current Price: 0.7157
- Australian economic growth delayed as Victoria’s lockdown continues.
- Chinese inflation is expected to have improved in the year to July.
- AUD/USD could extend its decline in the short-term to 0.7070 a strong static support level.
The AUD/USD pair closed Friday little changed around 0.7160, but a seventh consecutive week with gains. Increased demand for the greenback kept the upside in check, alongside encouraging Chinese data released at the beginning of the day. According to the official report, the July Trade Balance in the country surged to $62.33B with imports and exports rising by more than expected. The RBA released the Statement of its latest Monetary Policy, which was not that encouraging. Policymakers believe the jobs market will take longer to recover from the ongoing pandemic, while growth for 2021 has been downwardly revised to 5%. This came after Australian PM Scott Morrison said that the Treasury had estimated Victoria's lockdown would reduce the size of the economy in Q3 by between $7 billion and $9 billion.
Australia won’t release relevant macroeconomic data at the beginning of the week, but China will publish July inflation data. The yearly CPI is foreseen at 2.6% from 2.5% previously, while the Producer Price Index is expected at -2.5% from -3% in the same period.
AUD/USD short-term technical outlook
The daily chart for the AUD/USD pair shows that the bearish potential remains limited, as the pair continues to develop above all of its moving averages, while technical indicators eased from their highs, but remain within positive levels. In the 4-hour chart, the par is below its 20 SMA, which anyway lacks directional strength, but holds above the larger ones, which retain their bullish slopes. The Momentum indicator heads firmly lower below its midline while the RSI stands around 44, favouring another leg south, mainly on a break below 0.7140, the immediate support level.
Support levels: 0.7160 0.7115 0.7070
Resistance levels: 0.7195 0.7240 0.7285
View Live Chart for the AUD/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.