AUD/USD headed to 0.73 handle longer term?

Ross J Burland FXStreet

Currently, AUD/USD is trading at 0.7541, down 0.00% on the day, having posted a daily high at 0.7544 and low at 0.7538.

AUD/USD is a consolidation of the slide from territory above 0.7620 with a resurgence of the US dollar that was basing again overnight. The AUD has been rattled by lower commodity prices of late as well. Analysts at Westpac explained that the firmer US dollar has capped AUD/USD recently, and further slippage to the 0.7520 area is possible today.

AUD/USD 1-3 month:

The analysts at Westpac suggest that the resilience of US equity markets to the distractions of the Trump administration is a positive backdrop for risk-sensitive AUD"

"Chinese markets are of course less helpful as the deleveraging push continues, but the uptrend in steel prices suggests potential for recovery in iron ore prices. The rebound in Australian job creation keeps RBA rate cut talk at bay. But multi-month, we expect the ongoing rise in US interest rates to chip away at AUD/USD, leaving it around 0.73 by Q3."

AUD/USD levels

AUDUSD: Short term momentum indicators are showing mildly heavy

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the 20 SMA has turned strongly bearish above the current level, now converging with the 23.6% retracement of the same rally. "Technical indicators decelerated, but remain near oversold readings, favoring a decline towards 0.7470, the 61.8% retracement of the mentioned rally."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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