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Australian Dollar Forecast: Key AUD/USD Levels to Watch

Australian Dollar Forecast: Key AUD/USD Levels to Watch

Justin McQueen, Strategist

Australian Dollar Analysis and Talking Points

AUD/USD | Lacking Direction

The Australian Dollar has seen a rather calm week of trading with AUD/USD trading in sideways fashion. As it stands, the 0.70 handle continues to keep further upside in the pair at bay in light of the recent stalling across the equity space. While progress in regards to possible COVID-19 vaccines has helped keep risk sentiment firm, the continued rise in virus cases in Southern US states provides investors with plenty of reasons to remain cautious. The key concern being a more widespread shutdown of US states, which could place the US recovery on halt, thus weighing on high beta currencies, most notably the AUD and NZD.

AUD/USD & AUD/JPY Testing Resistance

As we look to next week, there is little in the way of notable highlights for Australia, as such, external factors will likely be the key driver for the Australian Dollar. The key areas of interest for the AUDUSD and AUDJPY is at 0.7000 and 75.00, respectively. That said, while the Aussie is vulnerable to pullbacks, downside in AUDUSD is likely to meet demand from 0.6900-0.6920 in the absence of material drop in risk appetite.

Australian Dollar Technical Outlook

Implied Weekly Range: 0.6900-0.7070

Support

Resistance

0.6920

-

0.7000

-

0.6900

-

0.7040

Weekly High

0.6820

50% Fib

0.7062

2020 High

AUD/USD Price Chart: Daily Time Frame

Australian Dollar Forecast: Key AUD/USD Levels to Watch

Source: IG Charts

--- Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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