AUD/USD Forecast: Bullish case supported by firmer gold

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7240

Australian housing data beat expectations in August, providing support to AUD/USD.
The market sold-off the greenback on renewed hopes for a US coronavirus aid package.
AUD/USD is trading at fresh 2-week highs and technically bullish.

The Aussie benefited from risk appetite on Friday, with AUD/USD ending a second consecutive week with gains at 0.7240. Hopes for a US coronavirus stimulus package boosted equities, which in turn, underpinned the commodity-linked currency. Soaring gold prices provided additional support, as the bright metal closed the week around $1,930 a troy ounce, a level last seen on September 21.

Australian data released at the end of the week was upbeat, as Home Loans were up 13.6% in August, while Investment Lending for Hokes was up 9.2% in the same month. The country won’t release macroeconomic data this Monday.

AUD/USD short-term technical outlook

The AUD/USD pair is offering a bullish stance in its daily chart, as technical indicators are crossing their midlines into positive territory, while the pair settled above all of its moving averages, although the 20 DMA maintains a bearish slope. In the 4-hour chart, the bullish potential is stronger, as the pair settled above all of its moving averages, while technical indicators stand within overbought readings, barely losing its strength upwards.

Support levels: 0.7210 0.7170 0.7130

Resistance levels: 0.7250 0.7290 0.7330

View Live Chart for the AUD/USD

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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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