AUD/USD Forecast: Gold lent unexpected support to the Aussie

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.5785

Services and manufacturing output seen contracting modesty in Australia in March.
Soaring gold prices limited the downside for the Aussie.
AUD/USD still at risk of falling as buyers remain side-lined.

The AUD/USD pair had a relatively quiet day, ending it unchanged around 0.5790. The pair seesawed within familiar levels trapped between the usual dollar’s demand, and resurgent gold prices. The bright metal soared to $1,561.21 a troy ounce, limiting the downside for the Aussie. During the upcoming Asian session, the country will unveil the preliminary estimates of the March Commonwealth Bank's PMI. Services activity and Manufacturing output are both seen contracting just modestly when compared to February’s final figures.

AUD/USD short-term technical outlook

The bearish potential of the AUD/USD pair has eased, but the risk seems still skewed to the downside. In the 4-hour chart, the pair is struggling around a bearish 20 SMA, which continues to head south below the larger ones. The Momentum indicator has eased from daily highs and is challenging its mid-line, while the RSI consolidates around 43, reflecting the absence of buyers.

Support levels: 0.5745 0.5700 0.5640

Resistance levels: 0.5840 0.5895 0.5930

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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