Chart - Courtesy Trading View
Spot Analysis:
AUD/USD was trading 0.12% lower on the day at 0.7217 at around 06:50 GMT.
Previous Week's High/ Low: 0.7370/ 0.7227
Previous Session's High/ Low: 0.7236/ 0.7206
Fundamental Overview:
Investors remain cautious ahead of a raft of US economic releases and FOMC minutes due later on Wednesday.
The sour tone of global indexes and higher government bond yields fueled demand for the safe-haven dollar.
Data released earlier today showed Australia Construction Work Done (QoQ) for Q3 printed at -0.3%, bettering estimates at -3.1%, but lower than the previous quarter's 0.8%.
Technical Analysis:
- AUD/USD trades below cloud and major moving averages
- Price action is consolidating break below major trendline support
- Momentum is strongly bearish, Stochs and RSI are sharply lower
- MACD and ADX support more downside on the cards
- GMMA indicator shows major and minor trend are strongly bearish
- The pair finds major support at 200-week MA at 0.7194
Major Support and Resistance Levels:
Support - 0.7194 (200-week MA), Resistance - 0.7235 (5-DMA)
Summary: AUD/USD trades with a bearish bias, but oversold oscillators raise scope for some reversal. 5-DMA is immediate resistance, break above will see test of 21-EMA.
