Finance

Poised to break the year low

AUD/USD Current Price: 0.7334

  • The poor performance of global indexes undermined aussie’s demand.
  • Australian August Consumer Inflation Expectations printed at 3.3%, missing expectations.
  • AUD/USD has resumed its decline, could reach fresh 2021 lows.

The AUD/USD pair trimmed Wednesday’s gains and settled in the 0.7330 price zone, not far from the year low set at 0.7288. Demand for the Australian currency was undermined by the poor performance of global equities, with the dismal mood exacerbated during US trading hours amid renewed speculation of heating inflation.

Another negative hint came from local data. Australia published August Consumer Inflation Expectations at the beginning of the day, which resulted at 3.3%, below the previous 3.7% and the expected 3.8%. The country won’t publish macroeconomic figures on Friday.

AUD/USD short-term technical outlook

The AUD/USD pair has room to extend its decline in the near-term and reach fresh 2021 lows. The 4-hour chart shows that the pair is once again below all of its moving averages, with the 200 SMA maintaining its bearish slope. In the meantime, technical indicators have crossed into negative territory with uneven strength, still signaling a bearish extension ahead.

Support levels: 0.7330 0.7290 0.7250

Resistance levels: 0.7380 0.7420 0.7460

View Live Chart for the AUD/USD

View more information: https://www.fxstreet.com/analysis/aud-usd-forecast-poised-to-break-the-year-low-202108121929

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