AUD / USD Current Price: 0.7310
- The poor performance of stocks and gold undermined the aussie’s upside potential.
- Australia will publish the Commonwealth Bank’s preliminary PMI for November on Monday.
- AUD / USD consolidating its annual gains, risk biased upward.
AUD / USD saw little activity for a second week in a row, confined to a range of around 100 pips. The pair settled around 0.7300, retaining most of its annual gains as the greenback became unattractive due to political and pandemic nervousness in the United States, while the Aussie was undermined by the bad. performance of stocks and gold. On a positive note, Australia appears to have the coronavirus under control and is easing restrictive measures.
On Monday, Australia will release the Commonwealth Bank’s preliminary November PMIs. Manufacturing activity is expected to remain at 54.2, while service output is expected to drop from 53.7 to 53.8.
AUD / USD Short-Term Technical Outlook
The risk for AUD / USD is skewed upward according to the daily chart, as the pair has spent the week mostly developing its moving averages and with technical indicators lacking directional strength but remaining in positive territory. Shorter term, and according to the 4 hour chart, the pair is neutral to bullish as it has stabilized above a flat 20 SMA, while technical indicators are stuck to their midlines with no clear directional force. .
Support levels: 0.7250 0.7210 0.7170
Resistance levels: 0.7300 0.7345 0.7380
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