AUD/USD fluctuates in tight range, stays quiet around mid-0.72s

US Dollar Index stays in red around mid-96s.
Brexit headlines dominate the first half of the day.
Market action is likely to remain subdued.

Eren Sengezer FXStreet

After moving sideways near 0.7250 during the first half of the day, the AUD/USD pair came under a modest bearish pressure and dropped to 0.7235 before recovering some of its recent losses. As of writing, the pair was down 0.12% on the day at 0.7254.

A broad-based USD weakness caused by rising demand for the British pound following the news of the EU Commission approving the draft of the post-Brexit ties declaration allowed the pair to reverse its course. As of writing, the US Dollar Index was losing 0.2% on the day at 96.50. With American traders enjoying their Thanksgiving holiday, the price action of the pair is likely to remain subdued in the remainder of the day.

There won't be any macroeconomic data releases from Australia on Friday either and the pair could extend its consolidation into the weekend.

Technical levels to consider

The RSI indicator on the daily chart for the pair moves sideways near the 50 mark, confirming the near-term neutral outlook. On the upside, the initial resistance could be seen at 0.7275 (Nov. 21 high) ahead of 0.7325 (Nov. 19 high) and 0.7380 (Aug. 21 high). Supports, on the other hand, are located at 0.7235 (daily low/20-DMA), 0.7165 (50-DMA/Nov. 13 low) and 0.7100 (psychological level/Sep. 7 low).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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