AUD/USD Current Price: 0.6538
- The Australian Dollar rose modestly in a quiet session amid holidays.
- Improvement in market sentiment weighed on the US dollar.
- AUD/USD rebounded further from monthly lows but encountered resistance at the 0.6550 area.
On Monday, the AUD/USD climbed for the second consecutive trading day, extending its recovery from monthly lows. However, the 0.6550 area capped gains and thin volume across financial markets kept the pair in a small range around 0.6540 during the American session.
On Tuesday, price action will likely pick up as Europe and the US return to activity after the holidays. In Australia, economic data due includes April Building Permits for April, ahead of Wednesday's critical Consumer Price Index. Next week, the Reserve Bank of Australia will announce its decision on monetary policy.
The US dollar dropped modestly on Monday, following Sunday's debt ceiling agreement in the US. Still, Congress needs to pass the law, and it is not a risk-free event. The US will report housing data and the Dallas Fed Manufacturing Index on Tuesday. The week's key report will be on Friday, with the US official employment report.
AUD/USD short-term technical outlook
The AUD/USD reached a bottom last Friday at 0.6489, the lowest level since mid-November. However, the Aussie recovered quickly, reaching the 0.6500 mark. The rebound extended on Monday until finding resistance at the 0.6555 area. A break above 0.6560 would point to a test of the next resistance at 0.6580, followed by 0.6605. Above the latter, the outlook would improve for the pair. While under 0.6640, the view is bearish.
On the 4-hour chart, the AUD/USD shows an upward bias in the very short term, holding above the 20-period Simple Moving Average (SMA). Technical indicators also point to the upside, with momentum about to break above midlines. A decline under 0.6520 would weaken the pair, exposing 0.6500 and the recent low.
Support levels: 0.6520 0.6485 0.6445
Resistance levels: 0.6555 0.6580 0.6610
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
Editors’ Picks
EUR/USD stays vulnerable near 1.0600 ahead of US inflation data
EUR/USD remains under pressure near 1.0600 in European trading on Wednesday. The pair faces headwinds from the US Dollar upsurge, Germany's political instability and a cautiou market mood, as traders look to US CPI data and Fedspeak for fresh directives.
GBP/USD trades with caution below 1.2750, awaits BoE Mann, US CPI
GBP/USD trades with caution below 1.2750 in the European session on Wednesday, holding its losing streak. Traders turn risk-averse and refrain from placing fresh bets on the pair ahead of BoE policymaker Mann's speech and US CPI data.
Gold price holds above $2,600 mark, bulls seem non committed ahead of US CPI
Gold price staged a modest recovery from a nearly two-month low touched on Tuesday. Elevated US bond yields and bullish USD cap gains for the non-yielding XAU/USD. Traders now look forward to the key US Consumer Price Index report a fresh impetus.
US CPI data preview: Inflation expected to rebound for first time in seven months
The US Consumer Price Index is set to rise 2.6% YoY in October, faster than September’s 2.4% increase. Annual core CPI inflation is expected to remain at 3.3% in October. The inflation data could significantly impact the market’s pricing of the Fed’s interest rate outlook and the US Dollar value.
Forex: Trump 2.0 – A high-stakes economic rollercoaster for global markets
The "Trump trade" is back in full force, shaking up global markets in the aftermath of the November 5th U.S. election. This resurgence has led to substantial shifts in both currency and bond markets, with the U.S. dollar index (DXY) jumping 2.0% + since election day.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.