AUD/USD Analysis: bears taking over
|AUD/USD Current Price: 0.6822
- Australian Commonwealth Bank PMI mixed but signaling weak economic progress.
- AUD/USD to accelerate its decline only with a break below 0.6770.
The AUD/USD pair has fallen to 0.6810 this Thursday, pressured during the American session amid resurgent dollar’s demand. The pair was off to a weak start to the day amid mixed preliminary estimates of October Commonwealth Bank PMI. Official data showed that services activity contracted to 50.8, although manufacturing activity beat expectations by printing 50.1, still below the previous monthly figure. Brexit-related headlines spurred demand for safe-haven assets, including the greenback. There are no macroeconomic figures scheduled in Australia for the upcoming Asian session.
AUD/USD short-term technical outlook
The AUD/USD pair is trading around the 38.2% retracement of its latest daily advance, technically bearish according to the 4-hour chart, as the pair has extended its slump below a now bearish 20 SMA, and as technical indicators hover near fresh weekly lows within negative levels. A steeper decline could be expected on a break below 0.6770, a mid-term static support.
Support levels: 0.6800 0.6770 0.6730
Resistance levels: 0.6840 0.6875 0.6900
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.