Australian Dollar Forecast: Key AUD/USD Levels to Watch
Australian Dollar Analysis and Talking Points
- AUD/USD | Contained by Cluster of DMA’s
- Australian Dollar Rises on Retail Sales Report
- Jobs and Inflation Reports are Pivotal to February Rate Decision
AUD/USD | Contained by Cluster of DMA’s
Overnight, the Australian Dollar had been supported by better than expected retail sales data amid the impact of Black Friday sales. Although, while this may have seen a slight easing of RBA rate cut bets, the seasonal effects in the data somewhat masks the underlying strength of consumption, therefore a clearer image will be provided in the December report. That said, with expectations of a rate cut from the RBA in February split 50/50 focus will be firmly fixed on the Australian jobs report (Jan 23rd) and CPI figures (Jan 29th).
On the technical front, AUD/USD has been contained between 0.6850-0.6900 as the pair consolidates after its topside rejection from the beginning of the year. On the downside, support is situated at 0.6838, which marks the December 17/18th double bottom and coincides with the 100DMA, while topside resistance hovers around 0.6890-0.6900.
Implied range for next week (0.6820 – 0.6930)
Dec 17/18 double bottom
Dec 10th low
AUD/USD Price Chart: Daily Time Frame (Mar 2019 – Jan 2020)
--- Written by Justin McQueen, Market Analyst
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