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Neutral Outlook for AUDUSD as the Price Returns Into Recent Trading Range
Neutral Outlook for AUDUSD as the Price Returns Into Recent Trading Range

Neutral Outlook for AUDUSD as the Price Returns Into Recent Trading Range

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Nikolas Papas Forex Analyst
    Summary:
  • On the technical side, AUDUSD return inside the consolidation rectangular having breached the lower band of the recent trading range for three days

AUDUSD trades 0.29% higher today at 0.6778 after Australia Gross Domestic Product (year over year) came in at 1.4% in line with  forecasts for 2Q, the quarterly reading also matched forecasts. Australia Commonwealth Bank Services PMI came in at 49.1 (August) versus previous reading of 49.2, the AiG Performance of Services Index rose from previous 43.9 to 51.4 in August.  Reserve Bank of Australia’s Governor Lowe noticed that monetary policy can push up asset prices but can’t support and deliver medium term growth.

On the technical side, the pair return inside the consolidation rectangular having breached the lower band of the recent trading range for three days. Now the technical outlook is neutral and only a break outside the rectangular will start a new move.  On the downside first support stands at 0.6753 today’s low which if breached  will open the way for a visit down to 0.6688 the low from August 26th. On the upside immediate resistance stands at 0.6783 today’s high while more offers will emerge at 0.6817 the high from August 13 and then at 0.6872 the 50 day moving average.