AUD/USD Forecast: At fresh multi-year lows, bottom not yet at sight

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6552

Chinese growth potential limited by coronavirus outbreak, Aussie taking the hit.
AUD/USD at risk of extending its decline below the 0.6510 level.

The AUD/USD pair reached a fresh multi-year low of 0.6551, a level that was last seen in March 2009. Australian data released at the beginning of the day missed the market’s forecast, as Q4 Construction Work Done was down by 3.0%, worse than the -1% expected. The Aussie was also weighed by persistent concerns about the possible effects of the coronavirus outbreak on Chinese economic growth. Wall Street’s modest bounce was not enough to offset concerns. This Thursday, Australia will publish Q4 Private Capital Expenditure, foreseen at 0.4% from -0.2% in Q3.

AUD/USD short-term technical outlook

The AUD/USD pair is trading at its daily lows at the end of the American session, with no signs of bearish exhaustion. The 4-hour chart shows that the pair faltered around a bearish 20 SMA before resuming its decline, while technical indicators maintain their bearish slopes, the RSI in oversold levels. The next relevant support comes at 0.6510, and there are good chances that the pair would break below if the market mood doesn’t take a turn.

Support levels: 0.6585 0.6550 0.6510

Resistance levels: 0.6640 0.6670 0.6700

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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