AUD/USD steady at support aon 0.79 handle awaiting a catalyst

Ross J Burland FXStreet

Currently, AUD/USD is trading at 0.7821, up 0.01% on the day, having posted a daily high at 0.7826 and low at 0.7817.

AUD/USD is steady at the start of the week with a lack of impetus in Asia during a phase of consolidation. Analysts at Westpac noted that support is around 0.7900 if risk appetite improves further.

PBOC sets the Yuan reference rate at 6.6709

AUD/USD 1-3 month:

Further out, the analysts explained that if the RBA remains firmly on hold, as we expect, and the US dollar rises on tighter Fed policy, then AUD/USD could fall to 0.76 by year end, a view held since the 9th August.

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that the recovery seen these last few days have not been enough to put the pair in bullish territory, as in the daily chart, the price remains unable to surpass a marginally bearish 20 DMA, struggling around it by the end of the week.

"Technical indicators have recovered, but present modest upward slopes within neutral territory, lacking enough momentum to confirm a new leg higher ahead," noted Bednarik.

Shorter-term, and according to the 4 hours chart, Bednarik notes that upward potential is limited, "Despite the price remains above a bullish 20 SMA, technical indicators have turned lower, still holding within positive territory The pair would need to surpass the mentioned weekly high to be able to extend its advance towards the 0.8000 region this Monday," she explained further."

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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