AUD/USD Forecast: Under Mild-Pressure, Firmer Equities Limit Declines

AUD/USD Current Price: 0.7597

• RBA´s Governor Lowe to testify before the House of Representatives Standing Committee on Economics.
• Australian Trade surplus jumped to 6.785M in December as imports fell.
• AUD/USD under mild-pressure, firmer equities limit declines.

The AUD/USD pair is posting a modest daily decline, trading just below the 0.7600 level ahead of the Asian opening. The pair was trapped between the persistent greenback’s demand and solid Wall Street gains, these last limiting the downside.

Australia published the December Trade Balance at the beginning of the day, which posted a surplus of 6.785M, better than the previous 5.014M. Exports increased 3% while imports were down by 2%. The country will release the December AIG Performance of Services Index, and Retail Sales for the same month. The RBA will release its monetary policy statement, while Governor Philip Lowe is due to testify before the House of Representatives Standing Committee on Economics.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair has failed to sustain gains above 0.7600, which increases the chances of a steeper decline. In the 4-hour chart, the pair is once again below a mildly bearish 20 SMA, which extends its decline below the larger one. In the meantime, technical indicators hold within negative levels, lacking clear directional strength. Bears will probably take over on a break below 0.7650, the immediate support level.

Support levels: 0.7560 0.7520 0.7475

Resistance levels:  0.7645 0.7680 0.7730

View Live Chart for the AUD/USD