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AUD/USD Forecast: Decline From A Multi-Week High Seems Corrective

Valeria Bednarik - Chief Analyst at FXStreet
·2 min read

  • Australian Q1 Construction Work Done beat expectations by falling 1.0%.

  • Gold prices fell intraday, adding pressure on the Aussie.

  • AUD/USD declined from a multi-week high seems corrective.

The AUD/USD pair hit a fresh multi-week high of 0.6679 in the European session, but retreated from the level and settled around the 0.6600 mark. Australia released the Q1 Construction Work Done, which resulted better than anticipated, printing at -1.0%. Nevertheless, the positive tone of the pair was related to the broad dollar’s weakness and rallying equities, easing during the American session as the sentiment turned sour.

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The American currency got to recover some ground on mounting tensions between the US and China over the latest Hong Kong security laws. Gold losing the 1,700 level added pressure on the commodity-linked currency intraday, although the commodity managed to recover and settle at around 1,720.00. This Thursday, Australia will publish the Q1 Private Capital Expenditure.

AUD/USD short-term technical outlook

The AUD/USD pair has been unable to surpass a flat 200 DMA for a second consecutive day, which somehow could be discouraging for bulls. In the short-term, and according to the 4-hour chart, the pair maintains its bullish stance, as buyers are defending the downside at around a bullish 20 SMA. Technical indicators in the mentioned time-frame are recovering within positive levels after correcting overbought conditions.

Support levels: 0.6560 0.6515 0.6475

Resistance levels: 0.6650 0.6685 0.6720

View Live Chart for the AUD/USD

Image by 3D Animation Production Company from Pixabay

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