AUD/USD Has Lost Momentum, But It Could Resume Its Advance

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AUD/USD Current Price: 0.7297

• Gold prices retreated after Friday’s rally, weighing on the aussie.
• Australia will publish August TD Securities inflation on Tuesday.
• AUD/USD has lost momentum, but it could resume its advance.

The AUD/USD pair posted a modest daily decline on Monday, ending the day just below the 0.7300 level. The pair peaked intraday at 0.7318, retreating on the pack of the soft performance of European and American equities, which spent the day struggling around their opening levels. Also, the aussie was weighed by falling gold prices, as the bright metal retreated to $1,808 a troy ounce.

Data wise, Australia published Company Gross Operating Profits, which improved to 7.1% QoQ in the second quarter of the year, more than doubling the market’s expectations. The country will release August TD Securities inflation, July Private Sector Credit and Building Permits on Tuesday.

AUD/USD short-term technical outlook

The AUD/USD pair could still recover its bullish stance in the near term. The 4-hour chart shows that the pair keeps developing above its 20 and 200 moving averages, while the 200 SMA maintains its bearish slope above the current level. At the same time,  technical indicators hold within positive levels, lacking directional strength. The pair still needs to break above 0.7330 to confirm a bullish extension towards the 0.7400 price zone.  

Support levels: 0.7280  0.7235 0.7190

Resistance levels:  0.7330 0.7375 0.7410

Image by 3D Animation Production Company from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.