AUD/USD Daily Forecast – Australian Dollar Continues To Move Higher
AUD/USD Video 09.02.21.
U.S. Dollar Is Under Pressure Against Australian Dollar
AUD/USD is currently trying to settle above the resistance at 0.7725 while the U.S. dollar is losing ground against a broad basket of currencies.
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The U.S. Dollar Index is testing the nearest support level which is located at the 20 EMA at 90.70. If the U.S. Dollar Index manages to settle below the 20 EMA, it will decline towards the next support level at 90.50 which will be bullish for AUD/USD.
Today, Australia reported that Business Confidence increased from 5 (revised from 4) in December to 10 in January compared to analyst consensus of 5. Business Confidence was stronger than expected due to Australia’s success in its battle against coronavirus and the continued economic rebound in China, which is Australia’s main trading partner.
Tomorrow, foreign exchange market traders will focus on Australia’s Consumer Confidence report for February. Analysts expect that Consumer Confidence increased from 107 in January to 108 in February as the economy continues to rebound. The final reading of the Building Permits report for December is projected to show that Building Permits grew by 10.9% month-over-month.
Technical Analysis
AUD/USD managed to settle above the resistance at 0.7700 and is testing the next resistance level at 0.7725. If this test is successful, AUD/USD will head towards the resistance at 0.7740. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
A move above 0.7740 will push AUD/USD towards the resistance at 0.7760. In case AUD/USD manages to settle above this level, it will head towards the next resistance which is located at 0.7780.
On the support side, the nearest support level for AUD/USD is located at 0.7700. If AUD/USD declines below this level, it will head towards the next support which is located at the 20 EMA at 0.7675. In case AUD/USD moves below the 20 EMA, it will get to the test of the next support level at 0.7660.
For a look at all of today’s economic events, check out our economic calendar.