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AUD/USD consolidating with a weak tone

FXStreet (Guatemala) - AUD/USD is trading at 0.8761, down -0.12% on the day, having posted a daily high at 0.8775 and low at 0.8757.

AUD/USD’s correction last week lacked conviction and failed ahead of the 38.2% retracement at 0.8933. Having sold off to the support at 0.8660, the pair is attempting the upside here but struggles at 0.8780 resistance and its consolidating in the broader weaker tone around the Australian dollar. Jane Foley, Senior Currency Strategist at Rabobank explained that the weaker tone of the AUD is likely to have been greeted with relief by domestic policy makers. “Last week the RBA admitted that “the Bank still expects growth to be a little below trend for the next several quarters”. The Australian labour market is carrying a fair degree of slack and wage inflation has softened. Despite this the danger of fuelling a housing bubble in Australia will mean that the RBA will be reluctant to consider further cuts in policy rates”.

AUD/USD noteworthy levels

With spot trading at 0.8761, we can see next resistance ahead at 0.8765 (Hourly 200 SMA), 0.8772 (Daily Open), 0.8779 (Hourly 100 SMA) and 0.8789. Support below can be found at 0.8756 (Daily Classic R1), 0.8751 (Hourly 20 EMA), 0.8746 (Weekly Classic PP) and 0.8718 (Daily Classic PP).

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