Australian Dollar Holds Near Key Averages in Sideways Trade Against US Dollar – Societe Generale

AUD/USD is outperforming G10 currencies ahead of Australian CPI and the RBNZ decision, with Societe Generale’s Kenneth Broux and team noting that the pair has held its March uptrend near 0.6900 while moving sideways around the 100-day moving average. Their analysis places nearby resistance at 0.7050/0.7080 and short-term support at 0.6950. A break above resistance could open the way for a larger rebound.

Can the Aussie build on trend support?

"AUD/USD defended the ascending trend line drawn since March near 0.6900, resulting in a brief rebound."

"The pair is now approaching the confluence of the 50-DMA and the 200-DMA at 0.7050/0.7080, which represents an important interim resistance zone."

"If AUD/USD overcomes this hurdle, a larger rebound cannot be ruled out."

"The low achieved last week at 0.6950 is a short-term support."

"Spot grinding sideways, glued to 100dma (0.7033), outperforms G10 with NZD ahead of Aussie September and 3Q CPI, and RBNZ interest rates decision tonight (consensus +25bp)."

"Support 0.6950, resistance 0.7080."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)