- The Aussie’s bull-run gets stopped prematurely as the Greenback resumes getting bid higher.
- With an almost-devoid economic calendar this week, the AUD remains chained to the whim of USD traders.
The AUD/USD is trapped near 0.7060 after a failed run back into the 0.7100 region, but renewed Greenback bidding sent the beleaguered Aussie back into 2018’s lows as broader market flows remain heavily slanted into the USD.
This week has been almost entirely devoid of any Australian economic data, and the trend continues through Thursday’s calendar as well, delivering nothing of note that Aussie traders could use to spur each other in either direction, and the Aussie will continue to trade at the whim of FX markets that see themselves trading heavily in the US Dollar(in both directions).
Thursday sees September’s US Durable Goods at 12:30 GMT (forecast -0.9%, previous 4.5%), followed by Pending Home Sales data for September at 14:30 GMT (forecast -0.1%, previous -1.8%), but unless the US figures come in significantly deviated from the market median forecasts, the US Dollar is likely to resume getting pushed around by broader market sentiment as traders balk at continuing trade war tensions and the growing risk of an economic slowdown within the domestic American economy.
AUD/USD levels to watch
With the Aussie peeking into new lows for 2018, the AUD/USD sees itself trapped in a bearish tailspin, as noted by FXStreet’s Valeria Bednarik: “the 4 hours chart for the AUD/USD pair shows that the early advance was contained by a bearish 100 SMA, with the pair now trading also below a bearish 20 SMA, which slowly accelerates below the larger one. This last is now converging with the 23.6% retracement of the October slide, reinforcing the static resistance level at around 0.7090. In the same chart, the Momentum indicator remains directionless below its mid-line but within familiar levels, but the RSI heads sharply lower near oversold readings, keeping the risk skewed to the downside. 0.7040, the yearly low, is a key support, with a break below it probably resulting in a steeper sell-off, particularly if the negative mood among equities’ traders persists.”
Support levels: 0.7040 0.7000 0.6960
Resistance levels: 0.7090 0.7120 0.7155
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