AUD/USD Forecast: Nearing the upper end of the range

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7761

The RBA maintained rates and the yield control policy unchanged in its June meeting.
Australian manufacturing indexes improved in May beyond expected.
AUD/USD advanced on Tuesday, struggling to confirm further gains.

The AUD/USD pair advanced modestly on Tuesday, topping 0.7768 and settling around the 0.7760 level. The Reserve Bank of Australia left interest rates unchanged as expected in its June meeting, also holding the yield on the 3-year Australian Government bond. Policymakers noted that the global economy keeps recovering, although such a recovery remains uneven as some countries have yet to contain the virus. The economic recovery in Australia is stronger than earlier expected, but inflation and wage pressures are subdued, according to the Board.

The country also published the AIG Performance of Manufacturing index which improved to 61.8 in May from 61.7 previously, and the Commonwealth Bank Manufacturing PMI, which printed at 59.9. This Wednesday, the country will publish the Q1 Gross Domestic Product, seen at 1.5% QoQ, down from 3.1% in the last quarter of 2020.

AUD/USD short-term technical outlook

The AUD/USD pair is poised to extend its advance, although further confirmations are required. The 4-hour chart shows that the price is struggling around directionless 100 and 200 SMAs, also battling to surpass the daily descendant trend line coming from May’s high. The Momentum indicator heads firmly higher within positive levels, while the RSI advances but at a softer pace, currently around 59.

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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