AUD/USD Forecast: Gold supports the aussie

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7756

Gold prices recovered their strength, spot trades near $ 1,900 a troy ounce.
Australian Consumer Inflation Expectations jumped to 4.4% in May.
AUD/USD needs to advance beyond 0.7820 to gain bullish traction.

The AUD/USD pair trades near a daily high at 0.7763, higher in range. The pair danced at the rhythm of the greenback, which anyway posted a limited reaction to soaring US inflation. Instead, the pair was supported by a resurgent Wall Street, as the three main indexes closed the day in the green, pulling off from early highs. The aussie was also supported by higher gold prices, as the bright metal trades near a daily high of $1,895 a troy ounce.

Data wise, Australia published June Consumer Inflation Expectations which jumped to 4.4% from 3.5% previously, and the HIA New Home Sales that improved from -54.4% to 15.2% in May. The country won’t publish macroeconomic figures this Friday.

AUD/USD short-term technical outlook

The AUD/USD pair keeps trading within familiar levels, now near the upper end of its recent range. The 4-hour chart shows that it is currently battling with a flat 200 SMA, while a few pips above also directionless 20 and 100 SMAs. Technical indicators hold within positive levels, although without directional strength. Only on a clear break above 0.7820 bulls could have some chances and push the pair closer to the 0.7900 figure.

Support levels: 0.7710 0.7675 0.7640

Resistance levels: 0.7780 0.7820 0.7850

View Live Chart for the AUD/USD

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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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