AUD/USD is testing the bear's commitments at the resistance of 0.7680 is a progressive grind higher albeit within a tight range at the start of this week.
AUD/USD bulls lost some momentum last week, but are making a bullish start to the week and a break through 0.7700 would set the tone again for a reversal of the correction at 0.7740. The focus stays with the Fed, Trump, the dollar and the RBA.
RBA governor’s recent testimony showed high hurdles to easing and these include potentially higher household debt, as explained by analysts at TD Securities who suggested would only be pushing house prices higher and affecting household spending. "Our Nov hike will be pushed out into 2018 if incomes and composition of employment do not strengthen in coming months."
Trump will be in focus this week - ANZ
Meanwhile, for the week ahead, attention will be with Trump and the US calendar to start before Aussie GDP and China manufacturing and non-manufacturing data pulses.
AUD/USD levels
Valeria Bednarik, chief analyst at FXStreet explained that the daily chart shows that the price converges with a bullish 20 SMA around 0.7670, whilst technical indicators eased within positive territory, with not enough directional Momentum. "Shorter term, the 4 hours chart shows that the price is below its 20 SMA and that it has broken below a daily ascendant trend line coming from January 27th low of 0.7511, currently around 0.7680. In the same chart, technical indicators have turned flat after entering bearish territory, limiting chances of a downward move, unless the price accelerates below 0.7640, the immediate support."
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold price defends gains below $2,400 as geopolitical risks linger
Gold price is trading below $2,400 in European trading on Friday, holding its retreat from a fresh five-day high of $2,418. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row, supported by lingering Middle East geopolitical risks.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.