AUD/USD Forecast: Short-term progress likely

AUD/USD Current Price: 0.6737

Australian Westpac Consumer Confidence improved 2.3% to 95.5 in February.
Demand for high-yielding assets underpinned the Aussie for a second consecutive day.
AUD/USD heading toward a relevant resistance level at 0.6770.

Commodity-linked currencies were the best performers this Thursday, backed by renewed demand for high-yielding assets. The AUD/USD pair traded as high as 0.6749, ending the day a handful of pips below this last. For once, Australian data supported the local currency, as the Westpac Consumer Confidence Index improved in February by 2.3% to 95.5. The index, however, is still down from a year earlier and while below 100, indicated that confidence remains weak. Nevertheless, the rally in global equities and steady gold prices supported the Aussie. This Friday, Australia will publish February Inflation Expectations, foresee at 4.3%, after printing 4.7$ in January.

AUD/USD short-term technical outlook

The short-term picture for AUD/USD is bullish according to the 4-hour chart, although the bullish potential in the long run, seems limited. In the mentioned time-frame, the pair is now above a bullish 20 SMA, capped by a bearish 100 SMA which converges with the mentioned daily high. The RSI indicator is stable at around 60, but the Momentum indicator continues to advance, skewing the risk to the upside. The pair now faces a major resistance level at 0.6770 and needs to surpass it to continue advancing.

Support levels: 0.6700 0.6660 0.6630

Resistance levels: 0.6770 0.6805 0.6840

View Live Chart for the AUD/USD

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