AUD/USD Forecast: Slowly but steadily grinding higher

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7448

The Australian trade surplus was upwardly revised to 7456M in October.
Gold prices hold ground, providing additional support to the commodity-linked currency.
AUD/USD retains its bullish potential despite lacking bullish momentum.

The AUD/USD pair reached a fresh 2020 high of 0.7449, nearing the August 2018 high at 0.7452. The pair advanced for a third consecutive day on the broad dollar’s weakness, getting some additional support this Thursday from equities, as most indexes closed in the green.

Australian data came in better than anticipated, as the Commonwealth Bank Services PMI rose to 55.4 in November from 54.9, while the Composite PMI improved to 54.9. The AIG Performance of Construction Index came in at 55.3 after printing 52.7 in October. Also, the October Trade Balance post a much larger-than-anticipated surplus of 7456M. The country will publish the final reading of October Retail Sales during the upcoming Asian session.

AUD/USD short-term technical outlook

The AUD/USD pair is trading near its daily high, bullish despite lacking momentum. The 4-hour chart shows that moving averages are barely advancing below the current level, while technical indicators consolidate near overbought readings. The former year’s high at 0.7413 is now the immediate support, although the pair would need to break below 0.7330 to lose its bullish potential.

Support levels: 0.7415 0.7375 0.7330

Resistance levels: 0.7450 0.7490 0.7530

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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