AUD/USD: headed through 0.8000?

AUD/USD bears and bulls can't outpace the other.
AUD/USD has room to extend above 0.8000 still.

AUD/USD was consolidating between 0.7936/75 in NY and is trading in early Asia trading at 0.7960, down -0.03% on the day, having posted a daily high at 0.7964 and low at 0.7956.

AUD/USD was taking advantage of a weak dollar at the start of this week although the upside momentum was halted in late Asia and with Europeans taking the pair down to 0.7938 as Brent fell off a cliff.

Forex today: US traders clean up the mess returning from holidays

Westpac's outlook

Analysts at Westpac explained that AUD/USD should consolidate between 0.7920 and the key 0.7980-00 area in advance of both consumer confidence and Thursday’s employment report.

AUD/USD 1-3 month:

Over the course of Q1 2018, we look for AUD/USD to return to the 0.75 area seen in early Dec 2017. This should occur if interest rate markets move closer to Westpac’s view of no change in the RBA cash rate this year and if the prospect of increased supply cools the recent commodity price rally. But a firmer US dollar is probably necessary to get as far as 0.75 (9 Jan)"

For today, we have the Westpac-MI consumer sentiment in focus.

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, a bullish 20 SMA extended its advance below the current level and above the mentioned Fibonacci resistance, while technical indicators hold directionless near overbought readings. "The pair has room to extend its advance on a break above 0.8000 a major psychological burden that once cleared, will probably result in a stronger advance."

Share: Feed news

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.