AUD/USD Current Price: 0.7087

  • Wall Street edged firmly higher as investors still cheer a less aggressive Fed.
  • Australian Retail Sales are expected to have risen by 0.9% in April.
  • AUD/USD is consolidating below 0.7100, bulls may soon give up.

The AUD/USD pair holds below 0.7100, incapable of taking advantage of the broad greenback’s weakness and the better tone of US indexes. The pair started the day with the back foot, falling to 0.7056. The subsequent attempts to regain the upside were rejected by sellers around the mentioned threshold.

Wall Street posted substantial gains in the aftermath of the FOMC Meeting Minutes, as market players welcomed a less hawkish than anticipated stance. Stocks maintained the aussie afloat but fell short of boosting AUD/USD.

The early slide could be attributed to the poor performance of Asian equities and tepid Australian data, as Private Capital Expenditures contracted by 0.3% in the first quarter of the year, much worse than the 1.5% advance expected. The focus on Friday will be on Australian April Retail Sales, seen up by 0.9%, following a 1.6% advance in March.

AUD/USD short-term technical outlook

The daily chart for the AUD/USD pair shows that it held within Wednesday’s range. Technical indicators have lost their directional strength around their midlines, while the pair continues to develop above a flat 20 SMA. The longer moving averages maintain modest bearish slopes well above the current level. Overall, it seems bulls are losing conviction, as the 0.7100 level stands for the 61.8% retracement of the 0.7265/0.6828 slump.

The pair is also neutral in the 4-hour chart, hovering around its 20 SMA and between the 100 and 200 SMA, all of them flat. Technical indicators, in the meantime, head nowhere within neutral levels. The pair needs to clear the weekly high at 0.7125 to gather upward strength, while bears may take over on a break below 0.7045.

Support levels: 0.7045 0.7000 0.6960

Resistance levels:  0.7130 0.7175 0.7210

View Live Chart for the AUD/USD

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