AUD/USD pushing higher but running out of momentum beneath 0.77
- The Aussie is looking for a bid, but markets are struggling to pick a direction in early trading.
- The AUD’s point of focus this week will be RBA Lowe’s speech on Wednesday.
The AUD/USD found a pop in the early Asia markets, lifting from the week’s opening prices into 0.7690 as market confidence looks set to test the waters after Friday’s sell-off jolted markets.
The Aussie lifted to 0.7695 in early trading but reports of missile strikes in Syria could be unnerving risk appetite as open conflict in the Middle East proves to be a global and messy matter, and markets are prone to get knocked off the risk wagon easily as broader markets are still awaiting China’s official response to the US’ latest round in the tariff spat between the two nations.
The AUD is looking ahead to early Wednesday’s speech from the Reserve Bank of Australia’s Governor Phillip Lowe, who will be speaking at 03:45 GMT following last week’s dovish showing from the RBA.
AUD/USD Levels to watch
The AUD’s technical outlook remains unchanged heading into the new week, but 0.7700 remains the key make-or-break target for the week’s movement, “technically, the pair attempted a couple of times to surpass the 0.7700 figure these last few days, but quickly retreated, indicating that selling interest is still strong. In the daily chart, technical readings favor a downward extension, as the pair was unable to surpass a sharply bearish 20 DMA, currently at around 0.7695, while the Momentum indicator maintains its bearish slope within negative territory, as the RSI consolidates around 43. Shorter term, and according to the 4 hours chart, the pair presents a neutral-to-bearish stance, as it’s currently developing below a horizontal 20 SMA, while technical indicators hover below their mid-lines, without enough directional strength to suggest further declines ahead.”
Support levels: 0.7610 0.7575 0.7540
Resistance levels: 0.7695 0.7740 0.7785