- The Aussie is trying to extend last week’s recovery, lifting in early Asia trading.
- Australian employment figures later this week will be the numbers to watch.
The AUD/USD is catching a bit of lift in the early Monday session, reaching 0.7560 as Tokyo comes online for a new week.
The Aussie has taken a breather from falling against the broader markets, and is grabbing a quick boost to kick off the new week.
The Aussie sees Meeting Minutes from the Reserve Bank of Australia (RBA) at 01:30 GMT on Tuesday, with employment figures following on Thursday. The RBA has struck a significantly dovish tone recently, and the Aussie’s recovery from last week could be a short affair.
AUD/USD analysis: to face multiple macroeconomic challenges this week
AUD/USD levels to watch
FXStreet’s own Valeria Bednarik, on the AUD’s technical outlook heading into the new week: “the Aussie’s recovery against the greenback was among the most relevant in technical terms but still fell short of indicating a reversal, as the pair reached the 38.2% retracement of its latest weekly decline at 0.7565 on Friday before easing some. In the daily chart, a strongly bearish 20 DMA converges with the mentioned Fibonacci resistance level, while technical indicators have recovered sharply from oversold readings, but stalled their advances right below their midlines, with the RSI partially losing upward strength, indicating that clearer signs are needed before calling for an upward extension. Shorter term, and according to the 4 hours chart, the pair settled a couple of pips below a 100 SMA, but well-above a bullish 20 SMA, while technical indicators are modestly retreating from overbought levels, not enough to suggest a downward move ahead.”
Support levels: 0.7500 0.7470 0.7435
Resistance levels: 0.7565 0.7610 0.7650
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