• AUD/USD staged a limited pullback on Thursday, but bias remains positive.
  • Deteriorating risk sentiment hit the Aussie, although it managed to trim daily losses.

AUD/USD

The Australian dollar pulled away from a 15-month peak right below the 0.7200 level and posted mild losses against the greenback on Thursday as Fed dovish tone and devastating US GDP figures triggered risk aversion and pushed the AUD/USD to lows at the 0.7120 area. However, a recovery in Wall Street indexes helped the Aussie to recover some of the lost ground during the American afternoon. Technical factors also contributed to the pair’s pullback. The AUD/USD failed to break decisively above the 0.7200 psychological level and turned lower instead.

Data from Australia showed that the ANZ's Business Confidence and the Activity Outlook indexes continued to worsen in July. Additionally, Building Permits declined by 4.9% on a monthly basis in June. During the upcoming Asian session, private sector credit for June and Q2 PPI figures will be released.  

AUD/USD short-term technical outlook

Technical indicators in the 4-hour chart maintain a slightly bullish tone, while the price has managed to recover above the 20-period SMA. In the daily chart, the positive stance is somewhat stronger, although the RSI remains in overbought territory suggesting some consolidation ahead. A clear break above 0.7200 is needed to pave the upward way.

Support levels: 0.7120 0.7070 0.7040

Resistance levels: 0.7200 0.7240 0.7280

 

 

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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

AUD/USD weaker ahead of RBA’s monetary policy decision

The Aussie is weak, despite receding dollar’s demand and the robust performance of US indexes. Coronavirus developments hit the commodity-linked currency ahead of the RBA.

AUD/USD News

Gold: This just might be as good as it gets for gold

The price of gold is trading at $1,975 within a range of between $1,960.54 and $1,986.76 at the time of writing, virtually flat on the day in consolidation having eeked out a fresh all-time high.

Gold News

USD/JPY struggling to retain the 106.00 level

The USD/JPY pair traded as high as 106.46 on Monday but struggles to retain gains above the 106.00 level amid lack of dollar’s demand.

USD/JPY News

Ethereum on its way to regaining $400 while BNB hit a new high at $22.5

BTC/USD is more stable than other coins right now but has been able to recover from its crash towards $10,500. It is currently trading at $11,369 and faces very little resistance until $14,000.

Read more

WTI drops below $40 on demand worries, OPEC+ output increase

Crude oil prices posted losses last week and seem to be struggling to shake off the bearish pressure on Monday. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $39.85, losing 1.5% on a daily basis.

Oil News

Forex Majors

Cryptocurrencies

Signatures