AUD/USD clings to 0.7150 as markets enjoy extended weekend

  • Buyers remain present despite the Aussie market closed.
  • The US housing data will be in focus after Friday’s soft reading.

The AUD/USD pair trades near 0.7150 during early Asian sessions on Monday. The pair carried its Good Friday gains forward as lack of data and major market closure, except Japan, China and Singapore, due to Easter Monday confined trade sentiment. The US Chicago Fed National activity index and existing home sales are the only readings up for grabs during the US session.

Even if the majority of the global markets were off on Friday, the US Dollar trimmed some of its previous gains as the US building permits and housing starts flashed soft numbers for March month. The housing starts lagged well behind 6.5% market consensus to 0.3% whereas building permits also softened to 1.27 million versus 1.29 million revised prior readout.

Adding to the Aussie bounce could be 100-day simple moving average (SMA) that has been acting as strong support since April 16.

While markets in Australia are closed the US data and developments in China can become the key drivers of the AUD/USD pair.

The trade negotiations between the US and China are going well and can keep offering signals of a deal, which in turn can please the Aussie buyers. However, upbeat prints of the US data and/or negative surprises from the trade talk might disappoint the optimists.

The US Chicago Fed National activity index earlier dropped to -0.29 whereas existing home sales are likely to decline to 5.30 million against 5.51 million prior.

AUD/USD Technical Analysis

100-day SMA level of 0.7135, followed by 0.7110 comprising 50-day SMA and an ascending support-line at 0.7095, can limit the pair’s near-term downside.

Alternatively, buyers need to conquer 200-day SMA level of 0.7190 in order to justify their strength in targeting 0.7230 and January highs near 0.7300.

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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD losses 1.1900 amid dollar’s comeback

EUR/USD has extended its gains, nearing 1.1950, but quickly turned negative now trading around 1.1880. The greenback recovers as equities fall as the market’s sentiment turns sour.


GBP/USD retreats from daily highs, holds around 1.3350

GBP/USD retreats from near 1.3400, partially undermined by Brexit woes but mostly on renewed dollar’s demand. Doubts arise about Chief EU Negotiator Barnier traveling to London.


XAU/USD trades with modest gains above $1810 level, lacks follow-through

A softer tone surrounding the USD assisted gold to gain some traction on Thursday. COVID-19 vaccine optimism might cap the upside for the safe-haven precious metal. Holiday-thinned liquidity warrants some caution before placing fresh directional bets.

Gold news

US Thanksgiving Wrap: Consumers carry October, November starts to look dicey

A triple dose of US data on Wednesday before the Thanksgiving holiday confirmed the strength of the consumer recovery even as employment problems again loom from the rising numbers of Covid-19 closures across the country.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info