AUD/USD Forecast: Unable to retain gains above 0.7300

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7300

The RBA Meeting Minutes showed that policymakers would welcome a weaker Aussie.
Chinese upbeat Retail Sales and Industrial Production figures provided support.
AUD/USD retains a neutral-to-bullish stance near the 0.7300 threshold.

The AUD/USD pair surged to 0.7342, its highest in two weeks, but gave up ahead of the close, unable to retain gains beyond the 0.7300 level. The early advance was backed by data released at the beginning of the day, as China published Retail Sales and Industrial Production figures, which beat expectations in August. Also, the RBA published the Minutes of the latest monetary policy meeting, which repeated the well-known stance of policymakers towards keeping rates low and the monetary policy highly accommodative. Worth noting, Board members said that a lower Aussie would provide more assistance to economic recovery.

This Wednesday, Australia will publish the August Westpac Leading Index, previously at 0.06%, and HIA New Home Sales for the same month, foreseen at 79.6% from 64.4% previously.

AUD/USD short-term technical outlook

The AUD/USD pair is trading a few pips below the 0.7300 level ahead of the Asian opening, retaining a neutral-to-bullish bias. The 4-hour chart shows that the pair is developing above all of its moving averages, which maintain their bullish slopes. Technical indicators, however, retreated towards their midlines, turning flat around them. Renewed buying interest beyond 0.7310 could result in a higher high for the week, mainly if the market’s mood remains upbeat.

Support levels: 0.7250 0.7215 0.7170

Resistance levels: 0.7310 0.7350 0.7385

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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