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ASX 200
ASX 200

AUDUSD at Monthly Highs on USD Weakness

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Nikolas Papas Forex Analyst
    Summary:
  • AUDUSD trades 0.07% higher at 0.6881 making fresh monthly highs after the pair got a boost yesterday from dovish comments from Feds Chair Jerome Powell

AUDUSD trades 0.07% higher at 0.6881 making fresh monthly highs after the pair got a boost yesterday from dovish comments from Feds Chair Jerome Powell. USD was under selling pressure across the board yesterday after the FOMC decision.

On the data front the Australia Consumer Inflation Expectations came in at 4% beating expectations of 3.5% in December. Yesterday we had stronger Business Conditions data. The Australia Bank’s Business Conditions came in at 4 topping estimates of 2 in November, while the Business Confidence came in at 0 in line with expectations. The House Price Index (quarter over a quarter) came in at 2.4%, topping analyst’s forecasts of 0.2% in the third quarter.

AUDUSD Technical Outlook

AUDUSD yesterday with an impressive rally managed to break above the 50 and 100-day moving averages and enhanced the positive outlook for the short term.

Today AUDUSD looking for a break above the intraday resistance at 0.6888 the daily top, while next resistance stands at 0.6909 the 200-day moving average.

On the other hand, immediate support for the pair  stands at 0.6866 today’s low and then at 0.6821 the 50-day moving average. In case the bears break below that level the momentum will turn negative and the next target will be the 0.6761 low from December 2nd.