AUD/USD Forecast: Benefiting from Wall Street’s optimism

AUD/USD Current Price: 0.6782

• The upbeat tone of US equities helped AUD/USD recover from a fresh weekly low.
• Softer-than-expected Hong Kong data weighed on the pair at the beginning of the day.
• AUD/USD turned bullish in the near term, next resistance at 0.6810.

Asian news undermined demand for the AUD throughout the first half of the day, with AUD/USD   pressured by a risk-averse environment. The pair bottomed at 0.6709, changing courses in the last trading session of the day to post an intraday high of 0.6784. It trades a handful of pips below the latter, in line with another leg north. At the beginning of the day, the Aussie was affected by news indicating that Hong Kong's exports plunged by the most in seven decades in November, affected by diminished global demand. The headline spurred risk aversion and sent global indexes into the red.

The better market mood amid US indexes' comeback underpinned AUD/USD during the American afternoon. However, Wall Street shrugged off the negative tone and picked up, putting pressure on the American currency. Data-wise, there's nothing on the Australian docket until next week.  

AUDUSD short-term technical outlook

The  AUD/USD pair is neutral-to-bullish according to technical readings in the daily chart. It has managed to advance above a still flat 20 SMA, while the 200 SMA maintains its bearish slope above the current level, providing dynamic resistance at around 0.6870. The Momentum indicator remains directionless at around its 100 level, while the RSI picked up, advancing at around 56.

AUD/USD turned bullish in the near term. In the 4-hour chart, the pair is above all of its moving averages, with the 20 SMA advancing above the longer ones. Still, moving averages remain confined to a tight range, reflecting the absence of a clear trend. At the same time, technical indicators stand within positive levels, with the Momentum advancing and the RSI consolidating around 61.

Support levels: 0.6750 0.6715 0.6670

Resistance levels: 0.6810 0.6850 0.6890

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