AUD/USD steady above 0.7200, ignoring market volatility

AUD/USD trades in a small range above 0.7200 and limited under 0.7230.
Key events ahead: Powell’s speech and AU employment report.

Matías Salord FXStreet

The AUD/USD pair has remained steady during the last hours hovering around 0.7210/20, flat for the day. The downside has been limited by a rally in gold and some weakness in the US dollar against commodity and emerging market currencies, the risk aversion tone keeps the upside capped.

Market participants keep the focus on Brexit developments at the moment. Regarding the AUD/USD, in a few hours, Fed Chairman Powell will deliver a speech in New York while on Thursday during the Asian session, the Australian employment report is due. The data will likely have a large impact on AUD crosses.

AUD/USD Technical outlook

The pair is moving with a slightly bullish bias, showing no significant momentum. A clear break above 0.7235 would add support for a test of 0.7250. Above the next barrier is seen at 0.7265.

On the flip side, the immediate support could be seen at 0.7205, followed by the key short-term level at 0.7185: a break lower would clear the way for a test of the weekly low at 0.7160/65 and a potential slide to the strong support around 0.7140.

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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