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AUD/USD Forecast: Trades Around 0.7800 And Has Room To Keep On Advancing

Valeria Bednarik - Chief Analyst at FXStreet
·2 min read

AUD/USD Current Price: 0.7792

  • Gold prices plummeted while Wall Street soared to all-time highs.

  • Australian tepid data was ignored as investors continue trading on sentiment.

  • AUD/USD trades around 0.7800 and has room to keep on advancing.

The aussie reached 0.7807 against the greenback this Wednesday, paring gains just ahead of the monthly high from April 2018 at 0.7812.  The pair retreated just modestly with the resurgent greenback’s demand during US trading hours, but quickly regained the upside and trades around 0.7800 as the day comes to an end. The pair ignored falling gold prices, as the bright metal shed over $40.00 per troy ounce. Instead, it found support in US equities, as the DJIA flirted with the 31,000 level.

Australian data released early Wednesday missed expectations, as the December Commonwealth Bank Services PMI printed at 57, anyway indicating expansion in the sector. The Composite PMI shrank to 55.6 from a previous estimate of 57.

On Thursday, Australia will publish its November Trade Balance. The surplus is foreseen at 6200 million, down from 7456 million in the previous month. The country will also publish Building Permits for the same month, expected to have risen by 2.5%.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair is holding near the mentioned daily high, bullish in the near-term. The 4-hour chart shows that the pair is firmly developing above a bullish 20 SMA, which keeps advancing beyond the larger ones. The Momentum indicator resumed its advance within positive level while the RSI indicator consolidates near overbought readings, favoring another leg north towards the 0.7900 price zone.

 Support levels: 0.7780 0.7740 0.7700  

Resistance levels: 0.7815 0.7850  0.7890

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