Current AUD / USD price: 0.7653
- Australian data was generally encouraging, with the trade balance rebounding again.
- The greenback strengthened on bullish US data, the
- AUD / USD is bearish and poised to re-test this year’s low in the 0.7530 price zone.
The Australian dollar fell against its US rival to 0.7644, its lowest since mid-April, trading nearby late in the day. The pair had been in decline since the start of the day, undermined by further speculation about an upcoming tightening of monetary policy in the United States and bullish data in the country, both of which are boosting demand for the greenback.
Australia released the AIG Construction Performance Index in May, which stood at 58.3 from 59.1 in April. The Commonwealth Bank Services PMI came in at 58, missing the expected 58.2, while the country’s trade balance posted a surplus of 8,028 million in April, beating expectations. Finally, April retail sales were confirmed at 1.1% MoM. Early Friday, the country will release figures related to housing.
AUD / USD Short Term Technical Outlook
AUD / USD fell after another failed attempt to break above a daily descending trendline from the May monthly high. The 4 hour chart shows that it has fallen below all of its moving averages, with the 20 SMA gaining bearish strength below the longer ones. Technical indicators are consolidating at daily lows with the RSI currently at 28. The year low was set at 0.7531, a likely bearish target for Friday.
Support Levels: 0.7640 0.7590 0.7550
Resistance levels: 0.7675 0.7710 0.7740
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