AUD/USD Current Price: 0.7374
- Australia is expected to have lost 137.1K job positions in September.
- Plummeting US Treasury yields undermined demand for the American currency.
- AUD/USD is technically bullish but needs to overcome 0.7410 resistance.
The AUD/USD pair resumed its advance and trades near the weekly high set at 0.7384, helped by the broad greenback’s weakness and substantial gains in gold prices. The American currency fell alongside government bond yields, which remained depressed following the release of the US Consumer Price Index and the FOMC Meeting Minutes. Mounting inflationary pressure is behind the Fed’s announcement of soon-to-come tapering, which may start as soon as next month.
Australia published October Westpac Consumer Confidence, which unexpectedly contracted to -1.5% vs a 2% advance expected. China released the September Trade Balance, which posted a surplus of $66.76 billion, much better than anticipated. Australia will publish September employment figures on Thursday. The country is expected to have lost 137.5K job positions in the month, while the unemployment rate is expected to have risen from 4.5% to 4.8%.
AUD/USD short-term technical outlook
The AUD/USD pair is ending the day above the 61.8% retracement of its latest decline at 0.7360. The risk is skewed to the upside in the daily chart, as the pair keeps developing above a flat 20 SMA, as the RSI indicator extends its advance currently at around 59. The Momentum indicator eases within positive levels, as the pair remained below its previous daily high.
The near-term picture is quite similar, as in the 4-hour chart, the pair is above all of its moving averages, with the 20 SMA heading north above the longer ones. However, technical indicators stand directionless within familiar levels. The bullish case will be firmer if the pair finally settled beyond 0.7410, the immediate resistance level.
Support levels: 0.7365 0.7330 0.7290
Resistance levels: 0.7410 0.7440 0.7475
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