AUD/USD Forecast: Retreating ahead of Australian Q2 GDP
AUD/USD Current Price: 0.7365
- The RBA left monetary policy unchanged, repeated its previous message.
- Australian Q2 Gross Domestic Product is foreseen at -6.0% as a result of the ongoing pandemic.
- AUD/USD is moving lower in the short-term, but still above 0.7300.
The AUD/USD pair is little changed for a second consecutive day, confined to a tight range yet near a two-year high of 0.7413. The Reserve Bank of Australia had a monetary policy meeting early Tuesday, but the event had a limited impact on the local currency. The central bank left the cash rate unchanged, and policymakers reiterated that, while the worst of the economic contraction has passed, the outlook remains “highly uncertain.” Building Permits in July rose 12% MoM while the Current Account Balance in Q2 beat expectations with 17.7B.
Renewed dollar’s demand kept the upside in check, although it fell short of taking the Aussie lower. Early Wednesday, Australia will publish its Q2 GDP. The economy is expected to have contracted 6% in the three months to June, a record slump attributed to the ongoing pandemic.
AUD/USD short-term technical outlook
The short-term picture for the AUD/USD pair suggests that the pair may correct further lower during the upcoming sessions as it’s pressuring daily lows ahead of the close. The 4-hour chart shows that it is still developing above bullish moving averages, with the 20 SMA providing dynamic support at 0.7340. Technical indicators, in the meantime, head firmly lower, retreating from overbought readings and approaching their midlines.
Support levels: 0.7340 0.7300 0.7260
Resistance levels: 0.7400 0.7440 0.7475
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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.
