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AUD/USD Forecast: Corrective Decline Could Accelerate Once Below 0.6860

  • The Australian NAB’s Business Confidence improved to -20 in May from -45 in April.
  • Australia will publish the June Westpac Consumer Confidence, previously at 16.4%.
  • AUD/USD is correcting lower but neutral in the short-term.
  • The AUD/USD pair put a halt to its bullish run this Tuesday, ending the day in the red in the 0.6960 price zone. The pair bottomed at 0.6898 during the European session, weighed by the sour tone of equities, later bouncing on the back of the broad dollar’s weakness. Australian data released at the beginning of the day was mixed, as the NAB’s Business Confidence improved to -20 in May from -45 in April. The NAB’s Business Conditions for the same period came in at -24 from -34, missing expectations of -16. On a positive note, the ANZ Job Advertisements improved to 0.5% in May from -53.4% in April.

    Early on Wednesday, Australia will publish the June Westpac Consumer Confidence, previously at 16.4%, and April Home Loans. China will publish May CPI and PPI data.

    AUD/USD Short-Term Technical Outlook

    The AUD/USD pair is neutral in its 4-hour chart after trimming half of its daily losses. In the mentioned time frame, the pair is just below a still bullish 20 SMA, and far above the larger ones. Technical indicators have turned flat, the Momentum around its 100 level, and the RSI at around 55. Chances of a corrective decline are still high, although only below the 0.6860 price zone, the slide could signal a bearish continuation in the following sessions.

    Support Levels: 0.690, 0.6860, 0.6815

    Resistance Levels: 0.6990, 0.7025, 0.7060

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