AUD/USD Is Set To Fall Further Once Below 0.7210, The Immediate Support Level

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

AUD/USD Current Price: 0.7246

• Australia will publish the preliminary estimates of the September Commonwealth Bank PMIs.
• The upbeat tone of Wall Street prevented a steeper decline in AUD/USD.
• AUD/USD is set to fall further once below 0.7210, the immediate support level.

The AUD/USD pair peaked at 0.7295, a fresh weekly high, but trimmed all of its gains and it’s finishing the day pretty much unchanged in the 0.7240 price zone. The American currency gained against most of its major rivals after the US Federal Reserve announced its latest monetary policy decision.

As widely anticipated, the Fed left its current policy unchanged, but Chair Jerome Powell noted that the inflation threshold has been reached, while on the employment one, “many” policymakers believe that they are also there. The dot-plot showed higher chances for a rate hike next year, albeit Powell said that tapering comes first and does not automatically mean the following rate hike.

Wall Street held on to substantial gains, which limited AUD/USD´s decline despite a generally stronger greenback. Data wise, Australia published the August Westpac Leading Index, which printed at -0.27%, down from the previous -0.12%. Early on Thursday, the country will release the preliminary estimates of the September Commonwealth Bank PMIs.

AUD/USD short-term technical outlook

The AUD/USD pair is hovering around the 61.8% retracement of its latest daily advance, neutral-to-bearish in the near term. The 4-hour chart shows that it is also seesawing around a bearish 20 SMA, which maintains its strong bearish slope below the longer ones. Technical indicators have turned south, the Momentum around its midline and the RSI at around 42, both lacking strength.

Support levels: 0.7210 0.7170 0.7125

Resistance levels: 0.7290 0.7335 0.7370

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.