AUD/USD Forecast: Higher gold prices underpin the aussie in a risk-averse environment
AUD/USD Current Price: 0.7197
- Spot gold surged to $1,900 a troy ounce its highest since June 2021.
- Mixed Australian employment figures from January failed to impress investors.
- AUD/USD is stuck at around 0.7200 and it’s losing its bullish potential.
The AUD/USD pair is little changed on a daily basis, hovering around the 0.7200 level. The pair started the day on the back foot, falling to 0.7148 following the release of Australian employment figures and renewed geopolitical concerns. The January employment report showed that the country added 12.9K new jobs in the month, better than anticipated, but it lost 17K full-time positions and added 30K part-time ones. The participation rate increased to 66.2%, while the unemployment rate held steady at 4.2%.
The poor tone of global indexes amid the escalation of the Russia-Ukraine conflict undermined demand for the aussie, although the pair held steady amid absent interest for the greenback, as the US is massively involved in the potential European war. Gold prices, in the meantime, soared, with the bright metal reaching $1,900 a troy ounce, its highest since June 2021.
AUD/USD short-term technical outlook
The AUD/USD pair trades marginally higher on a daily basis, but the daily chart shows that the pair is stuck between its 20 and 100 SMAs, both lacking directional strength. The Momentum indicator keeps heading north within positive levels, but the RSI indicator consolidates at around 55.
In the near term, and according to the 4-hour chart, the pair is neutral-to-bullish as it holds above its 20 SMA which is losing its bullish strength but anyway remains well above the longer ones. Meanwhile, the Momentum indicator retreated toward its midline while the RSI remains directionless around 53, reflecting the lack of directional interest.
Support levels: 0.7150 0.7100 0.7065
Resistance levels: 0.7215 0.7255 0.7300
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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.
