AUD/USD Forecast: Comfortable around 0.7300, bears side-lined

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AUD/USD Current Price: 0.7310

  • The poor performance of equities and gold undermined the aussie’s bullish potential.
  • Australia will publish the November preliminary Commonwealth Bank PMIs this Monday.
  • AUD/USD consolidating yearly gains, risk skewed to the upside.

The AUD/USD pair saw little activity for a second consecutive week, confined to a roughly 100 pips’ range. The pair settled around 0.7300, holding on to most of its yearly gains, as the greenback became unattractive due to US political and pandemic jitters, while the aussie was undermined by the poor performance of equities and gold. On a positive note, Australia seems to have the coronavirus under control, and it is in the process of easing restrictive measures.

This Monday, Australia will publish the November preliminary Commonwealth Bank PMIs. Manufacturing activity is expected to remain at 54.2, while services output is expected to have expanded from 53.7 to 53.8.

AUD/USD short-term technical outlook

The risk for the AUD/USD pair is skewed to the upside according to the daily chart, as the pair spent the week developing above all of its moving averages and with technical indicators lacking directional strength but holding into positive territory. In the shorter-term, and according to the 4-hour chart, the pair is neutral-to-bullish as it settled above a flat 20 SMA, while technical indicators are stuck to their midlines without clear directional strength.

Support levels: 0.7250 0.7210  0.7170

Resistance levels: 0.7300 0.7345 0.7380  

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