AUD/USD retreats to 0.7300 area in choppy day


  • AUD/USD struggles to make a decisive move in either direction on Friday.
  • US Dollar Index stays flat below 93.00 ahead of the American session.
  • UoM Consumer Sentiment Index will be featured in the US economic docket.

The AUD/USD pair climbed to a daily high of 0.7334 in the early trading hours of the Asian session but reversed its direction amid a lack of significant market drivers. As of writing, the pair was virtually unchanged on a daily basis at 0.7310.

In the absence of macroeconomic data releases from Australia, the sharp upsurge witnessed in the positively-correlated NZD/USD pair helped AUD/USD gain traction n Friday. Earlier in the day, New Zealand's finance minister, Grant Robertson, said a stronger-than-expected economic recovery would likely allow the Reserve Bank of New Zealand to keep the policy rate unchanged in early 2021.

Meanwhile, the US Dollar Index (DXY) is staying relatively calm below 93.00 following Thursday's drop and not providing a direction clue to AUD/USD.

In the second half of the day, the University of Michigan will release its preliminary Consumer Sentiment Index data for September. Investors expect this data to show a slight improvement in consumer confidence. 

AUD/USD outlook

Westpac analysts expect AUD/USD to advance toward 09.7400 over the next month.

“Local and regional economic trends underscore a continuing bullish A$ story. August employment grew 111K, well ahead of expectations for a 35K decline," analysts explained. "There are always grounds for caution over the quality of the jobs being reported and unemployment will rise as JobKeeper is reduced in Q4, but the RBA’s 10% end-2020 forecast will need to be revised.”

Technical levels to watch for

AUD/USD

Overview
Today last price 0.7311
Today Daily Change -0.0001
Today Daily Change % -0.01
Today daily open 0.7312
 
Trends
Daily SMA20 0.7277
Daily SMA50 0.7183
Daily SMA100 0.6965
Daily SMA200 0.6766
 
Levels
Previous Daily High 0.7317
Previous Daily Low 0.7254
Previous Weekly High 0.7325
Previous Weekly Low 0.7192
Previous Monthly High 0.7416
Previous Monthly Low 0.7076
Daily Fibonacci 38.2% 0.7293
Daily Fibonacci 61.8% 0.7278
Daily Pivot Point S1 0.7272
Daily Pivot Point S2 0.7231
Daily Pivot Point S3 0.7208
Daily Pivot Point R1 0.7335
Daily Pivot Point R2 0.7358
Daily Pivot Point R3 0.7399

 

 

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