- The Aussie heads into a thin trading week already hung in the middle.
- US data due at the mid-week inflection point could stir things up.
The AUD/USD saw little reason to move from its current range last week, bouncing between 0.7100 and 0.7150 in rough sideways chop, and the Aussie heads into the new trading week with a noticeable lack of action on the economic calendar, leaving broader market sentiment in control of FX flows.
The data docket for Monday is incredibly thin, with only a few low-impact events slated for the day, and broader markets will get to see a steady open to the week’s trading action, with the Aussie lounging just north of 0.7100.
The rest of the week is similarly quiet for the AUD, and the mid-week will see the Greenback making most of the broader markets’ directional decisions, the US economy’s Markit PMIs, CPIs, and GDP figures all coming in for a landing in the latter half of the trading week.
AUD/USD levels to watch
From FXStreet’s own Valeria Bednarik: “from a technical point of view, the pair is trading around the 38.2% retracement of its October decline after flirting with the 61.8% retracement of the same slide at the beginning of the week at 0.7160, a key resistance level for the upcoming sessions. In the daily chart, the pair settled below its 20 DMA, also below the larger ones, all of them with strong bearish slopes. Technical indicators have advanced modestly, heading north within neutral levels. Shorter term, and according to the 4 hours chart, the pair offers a neutral-to-bearish stance, as technical indicators hold directionless around their midlines, while the price is a few pips below the 20 and 100 SMA, with the shortest lacking directional strength.”
Support levels: 0.7085 0.7040 0.7000
Resistance levels: 0.7130 0.7160 0.7200
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