AUD/USD posted gains for a third straight week. The pair closed the week at 0.6897, its best weekly close since late October. There is only one Australian release this week. Here is an outlook at the highlights and an updated technical analysis for AUD/USD.
- Private Sector Credit: Monday, 0:30. Borrowing levels remain low, as consumers remain concerned about economic conditions. The indicator dipped from 0.2% to 0.1% in September, shy of the estimate of 0.3%.The forecast for October stands at 0.2%.
AUD/USD Technical Analysis
Technical lines from top to bottom:
We start with resistance at 0.7250.
0.7165 has held firm since early April.
0.7085 has been a resistance line since July. This is followed by 0.7022.
0.6960 could face pressure if AUD/USD continues to move higher.
0.6865 (mentioned last week) remains an immediate support level.
0.6744 is next.
0.6686 was tested in the first week of October.
0.6627 has held in support since March 2009.
0.6532 is the final support level for now.
I remain bullish on AUD/USD
The new Phase 1 trade agreement should boost the Chinese economy, which is good news for Australia, as China is Australia’s number one trading partner. However, with a quiet week ahead due to Christmas, any gains this week will likely be limited.
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