AUD/USD Current Price: 0.7523
- Rallying equities and firmer gold prices sent AUD/USD to fresh three-month highs.
- Australia will publish on Thursday Q3 NAB’s Business Confidence.
- AUD/USD is bullish, although extreme technical readings suggest a corrective decline.
The AUD/USD pair trades at its highest since early July, extending its recent rally on the back of equities’ run. US indexes rose its latest rally, with the Dow Jones Industrial Average reaching all-time highs and the S&P 500 flirting with records, underpinning the pair. Wall Street welcomed better-than-anticipated Q3 earnings reports, sending investors away from the safe-haven greenback. Firmer gold prices, as the bright metal reached fresh weekly highs, provided additional support to the aussie.
Meanwhile, Australian macroeconomic figures keep reflecting the lockdowns effects on the economy. The September Westpac Leading Index printed at -0.02%, slightly better than the previous -0-27%. The country will publish on Thursday Q3 NAB’s Business Confidence, foreseen at 5, down from 17 in the previous quarter.
AUD/USD short-term technical outlook
The AUD/USD pair trades in the 0.7520 price zone, overbought in the daily chart. The pair has extended its dally above its 20 and 100 SMAs, while technical indicators reached extreme levels, partially losing their bullish strength.
The 4-hour chart shows that AUD/USD is well above a firmly bullish 20 SMA, while the 100 SMA is crossing above the 00 SMA, both below the shorter one. The Momentum indicator maintains its bullish slope, while the RSI indicator consolidates, both within overbought levels. A corrective slide is not out of the picture, but as long as the pair holds above 0.7470, bulls will retain control.
Support levels: 0.7440 0.7400 0.7365
Resistance levels: 0.7510 0.7550 0.7590
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD keeps the red below 0.6400 as Middle East war fears mount
AUD/USD is keeping heavy losses below 0.6400, as risk-aversion persists following the news that Israel retaliated with missile strikes on a site in Iran. Fears of the Israel-Iran strife translating into a wider regional conflict are weighing on the higher-yielding Aussie Dollar.
USD/JPY recovers above 154.00 despite Israel-Iran escalation
USD/JPY is recovering ground above 154.00 after falling hard on confirmation of reports of an Israeli missile strike on Iran, implying that an open conflict is underway and could only spread into a wider Middle East war. Safe-haven Japanese Yen jumped, helped by BoJ Governor Ueda's comments.
Gold price pares gains below $2,400, geopolitical risks lend support
Gold price is paring gains to trade back below $2,400 early Friday, Iran's downplaying of Israel's attack has paused the Gold price rally but the upside remains supported amid mounting fears over a potential wider Middle East regional conflict.
WTI surges to $85.00 amid Israel-Iran tensions
Western Texas Intermediate, the US crude oil benchmark, is trading around $85.00 on Friday. The black gold gains traction on the day amid the escalating tension between Israel and Iran after a US official confirmed that Israeli missiles had hit a site in Iran.
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu, WIF token’s show of strength was not just influenced by Bitcoin price reclaiming above $63,000.