Note from the 21 December AUDUSD Technical Outlook, that the pair slides to the lower end of its narrow weekly trading range and remains confined within.
21 December, GKFX – The AUD/USD pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the Asian session on Thursday.
• Remains confined within its weekly trading range.
• A modest USD uptick negated by sliding US bond yields.
• US economic data eyed for fresh impetus.
The pair has been trading within 40-45 pips narrow trading range since the beginning of this week, with a combination of diverging factors forcing the pair to extend its consolidative price action below the very important 200-day SMA.
The recent US Dollar selling pressure now seems to have abated but, to some extent, was negated by sliding US Treasury bond yields and has eventually led to a subdued/range-bound price action around higher-yielding currencies – like the Aussie.
Meanwhile, the latest chatter, saying that China has temporarily lifted coal import restrictions also failed to provide any meaningful boost to the commodity-linked Australian Dollar, with the pair struggling to set its next short-term direction.
Investors now look forward to the US economic docket, featuring the release of final US GDP growth figures for the third-quarter, Philly Fed Manufacturing Index and the usual initial jobless claims, for some fresh impetus in a relatively quiet trading session.
21 December AUDUSD Technical Outlook
Immediate support remains near the 0.7640 level, below which the pair is likely to head back towards testing the 0.7600 handle before eventually dropping to its next support near 0.7565 horizontal zone.
On the upside, 0.7680 level, closely followed by the 0.7700 handle (200-DMA), remains an important hurdle, which if conquered might trigger a short-covering rally towards early Nov. swing high resistance near the 0.7730 level.
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