- Summary:
- In this AUD/USD forecast, we look at why the pair may be heading higher after the latest Australia GDP data and why it could rise to 0.7900
The AUD/USD price has formed a bullish consolidation pattern after the relatively strong Australian economic numbers. The AUDUSD is trading at 0.7820, which is significantly higher than the lowest point yesterday.
What happened: Earlier today, the Australian Bureau of Statistics (ABS) and Markit published the latest GDP and services PMI numbers. The GDP data by ABS showed that the country’s economy expanded by 3.1% in the fourth quarter.
In total, the economy contracted by 1.1% on an annualized basis. As a result, analysts expect that the economic recovery will continue this year as the world’s economy reopens.
The AUD/USD is also digesting the relatively positive PMI numbers. On Monday, data showed that the Australian and Chinese manufacturing PMIs were relatively strong. And today, data revealed that the services PMI was also strong. In Australia and China, the services PMI was 53.4 and 51.5, respectively.
AUD/USD technical outlook
The AUDUSD pair has formed a small bullish consolidation pattern as traders ponder the next move. This action has happened at 0.7818, which is an important level since it was the highest level on January 6 and 7.
Also, the 15-day and 25-day weighted moving averages (WMA) are forming a bullish crossover pattern. Therefore, in my view, the AUD/USD price will continue rising as bulls target the next resistance level at 0.7900. However, a drop below 0.7800 will invalidate this trend.
AUDUSD technical chart
