AUD/USD Current Price: 0.6703

  • The Reserve Bank of Australia will announce its monetary policy early on Tuesday.
  • The poor performance of Wall Street undermined demand for the Aussie.
  • AUD/USD turned bearish in the near term and can extend its slide towards 0.6600.

The AUD/USD pair ends Monday a handful of pips above a daily low of 0.6703, retreating sharply after surging to 0.6850 during Asian trading hours. The pair rallied on the back of the broad US Dollar weakness as a better market mood weighed on the safe-haven currency.  However, the American currency recovered drastically following the release of upbeat US data, which weighed on stock markets and hence, the Aussie.

Australian data was mixed. The country published at the beginning of the day the November AIG Performance of Construction Index, which improved from 43.3 in October to 48.2. Also, S&P Global upwardly revise the November Services PMI to 47.6 from a preliminary estimate of 47.2. Both indexes remain in contraction territory, but improving figures are an early sign of a potential bottom in the economic setback. On a negative note, TD Securities Inflation rose to 5.9% YoY from 5.2% in October, while Q3 Company Gross Operating Profits plummeted 12.4% against an expected increase of 10.1%.

On Tuesday, the focus will be on the Reserve Bank of Australia. The central bank is expected to hike the benchmark rate by 25 bps from the current 2.85% to 3.1%.  However, there is a chance Governor Philip Lowe & co would choose to hold the fire for now. The main focus, however, will be on what Australian policymakers have under their sleeves for the upcoming meetings.

AUDUSD short-term technical outlook

The daily chart for AUD/USD pair shows that it is developing above converging 20 and 100 SMAs at 0.6685, with the shorter one maintaining its bullish slope. On the other hand, technical indicators turned south, with the Momentum crossing its midline into negative territory and the RSI currently at 54, supporting a bearish extension, particularly if the mentioned support gives up.

In the near term, and according to the 4-hour chart, the risk skews to the downside. The pair is trading below its 20 and 100 SMAs, both partially losing their bullish strength, while the 200 SMA maintains its firmly bullish slope far below the current level. Technical indicators, in the meantime, consolidate at fresh one-week lows within negative levels, also supporting another leg south.

Support levels: 0.6685 0.6650 0.6610

Resistance levels: 0.6730 0.6770 0.6815

View Live Chart for the AUDUSD

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD eases to daily lows near 1.0260

EUR/USD eases to daily lows near 1.0260

Better-than-expected results from the US docket on Friday lend wings to the US Dollar and spark a corrective decline in EUR/USD to the area of daily lows near 1.0260.

EUR/USD News
GBP/USD remains under pressure on strong Dollar, data

GBP/USD remains under pressure on strong Dollar, data

GBP/USD remains on track to close another week of losses on Friday, hovering around the 1.2190 zone against the backdrop of the bullish bias in the Greenback and poor results from the UK calendar.

GBP/USD News
Gold recedes from tops, retests $2,700

Gold recedes from tops, retests $2,700

The daily improvement in the Greenback motivates Gold prices to give away part of the weekly strong advance and slip back to the vicinity of the $2,700 region per troy ounce at the end of the week.

Gold News
Five keys to trading Trump 2.0 with Gold, Stocks and the US Dollar

Five keys to trading Trump 2.0 with Gold, Stocks and the US Dollar Premium

Donald Trump returns to the White House, which impacts the trading environment. An immediate impact on market reaction functions, tariff talk and regulation will be seen. Tax cuts and the fate of the Federal Reserve will be in the background.

Read more
Hedara bulls aim for all-time highs

Hedara bulls aim for all-time highs

Hedara’s price extends its gains, trading at $0.384 on Friday after rallying more than 38% this week. Hedara announces partnership with Vaultik and World Gemological Institute to tokenize $3 billion in diamonds and gemstones

Read more
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

Majors

Cryptocurrencies

Signatures