The AUD/USD pair reached 0.7934, a fresh three-year high at the beginning of the day, to finish the day around the 0.7900 figure, as the sour tone of Wall Street undermined the aussie’s demand but fell short of backing the greenback. Gold prices posted modest intraday declines, also undermining the AUD/USD bullish case.
This Wednesday, Australia will publish the Wage Price Index for the last quarter of 2020, which is expected to have risen by 0.3% quarterly basis, recovering from 0.1% in Q3. The annual reading, on the other hand, is seen at 1.1%, down from 1.4%.
The AUD/USD pair is holding on to gains and still has room to reach the 0.8000 threshold. In the 4-hour chart, the 20 SMA heads firmly north around 0.7865 while the 100 SMA crosses above the 200 SMA far below it. The Momentum indicator heads firmly lower and nears its midline, rather indicating limited bullish strength at the time being instead of supporting a slide. The RSI consolidates near overbought readings, suggesting absent selling interest.
Support levels: 0.7865 0.7820 0.7770
Resistance levels: 0.7930 0.7965 0.8000