AUD/USD Forecast: Fresh multi-year lows at sight

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6687

Australia to release the Westpac Leading Index for January, previously at 0.05%.
Coronavirus a ”material risk” for the Chinese economy according to the RBA.
AUD/USD about to challenge the over one-decade low at 0.6661.

The AUD/USD pair lost the 0.6700 level at the beginning of the day, weighed by RBA Meeting Minutes and risk aversion. The document from the Australian Central Bank showed that policymakers believe the coronavirus is a “material risk” for the Chinese economy and therefore the Australian one. In a surprise move, they say they stand ready to ease further if needed, although hinting it will be a tough decision as it may spur house prices and affect people’s savings. Te pair bottomed for the day at 0.6672, recovering some ground during the US session to settle in the 0.6680 price zone.

During the upcoming Asian session, Australia will release the Westpac Leading Index for January, previously at 0.05%. The country will also publish Q4 Wage Price Index, seen steady at 0.5% QoQ and 2.2% YoY.

AUD/USD short-term technical outlook

Down for a fourth consecutive day, the AUD/USD pair is trading a handful of pips above a multi-year low of 0.6661, now the immediate support. The pair is poised to extend its decline according to the 4-hour chart, as it fell further below all of its moving averages, while technical indicators resumed their slides within negative levels, following a limited advance. A break below the mentioned level, mainly in a risk-averse scenario, could see the pair extending its decline sub-0.6600 in the upcoming sessions.

Support levels: 0.6660 0.6630 0.6595

Resistance levels: 0.6730 0.6770 0.6805

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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