AUD/USD outlook: Keeps firm tone ahead of US inflation data
AUD/USD
AUDUSD remains constructive and consolidating Tuesday’s 0.80% advance, as this morning’s RBNZ rate cut by 25 basis points negatively impacted Aussie dollar, but dips were limited, due to strong near-term bullish sentiment on revived risk appetite.
Technical studies are bullish on daily chart (rising positive momentum / MA’s turning to bullish setup) with strong bullish signals generated on close above converged 100/200DMA and penetration and close within rising daily cloud.
On the other hand, overbought conditions may further weigh on bulls, as markets await release of key US inflation data.
AUDUSD would benefit if CPI numbers fall below expectations, with extension towards targets at 0.6680 (daily cloud top) and 0.6692 (Fibo 76.4% of 0.6798/0.6348) in bullish scenario.
Conversely, above expectations July CPI would deflate AUD and risk extension through initial supports at 0.6613/0.6596 zone (daily cloud base / converged 100/200DMA’s).
Res: 0.6642; 0.6680; 0.6692; 0.6714.
Sup: 0.6613; 0.6596; 0.6573; 0.6555.
Interested in AUD/USD technicals? Check out the key levels
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
