AUD/USD consolidates weekly losses around 0.7200

AUD among worst performers of the week affected by RBA statement and Australian economic data.
AUD/USD heads for lowest weekly close since late October.

Matías Salord FXStreet

The AUD/USD pair is about to end the week hovering around 0.7200. Price remains in a range between 0.7240 and 0.7200, almost 200 pips below the peak it reached on Monday near 0.7400.

Five days ago the pair soared on the back of risk appetite, but then, as the improvement in market sentiment eased, lost momentum. The retreat accelerated after the RBA statement and also amid Australian GDP data. It bottomed on Thursday at 0.7188 , the lowest in three weeks.

Since yesterday’s US session it has been moving sideways. Today it climbed momentarily to 0.7240 following the US employment report, but the pulled back. Data showed the US economy added 155K jobs in November, below the 195K expected. “Other data suggest that the overall job picture remains relatively strong. Both ISM employment components remain high, consumers’ views of the availability of jobs continues to improve and small business hiring plans remain while job openings remain at record highs. We still anticipate the Fed will raise rates at its December meeting”, said analyst at Wells Fargo.

AUD/USD remains near 0.7200, about to post the lowest weekly close since late October, after making a sharp reversal from 4-month highs. The move could signal the end of the late October-December rally.

AUD/USD Levels to watch

On the downside, a consolidation below 0.7200 could clear the way to more losses. The next support might lie at 0.7160 (Nov 13 low) and 0.7110. To the upside, the immediate resistance lies at 0.7240, followed by 0.7260 (20-day moving average) and 0.7295.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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