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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.