AUD/USD: mixed on 0.72 handle, bearish bias remains despite Q4 GDP downgrade

Currently, AUD/USD is trading at 0.7215, up 0.08% on the day, having posted a daily high at 0.7221 and low at 0.7210.

The biggest news on a slow session overnight and for the same today in Asia before the Xmas break, following a series of poor data releases overnight, the Atlanta Fed downgraded its model prediction for Q4 GDP from 2.6% to 2.5%. Meanwhile, the Aussie, was a mixed day overnight with a range of circa 35 pips on and around the 0.72 handle, albeit with momentum that remains negative, and as analysts at Westpac suggested, the next target is 0.7145 (May low).

AUD/USD 1-3 month: 

The analysts look for below 0.7200. "The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead. The Fed’s assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar. Against that coal and iron ore are likely to sustain a good portion of their dramatic rises, and economic data should improve in Q4 and Q1, but these forces are subservient to the US dollar’s trend. There’s also the issue of Australia’s AAA rating, seen at risk."

AUD/USD levels

Current price is 0.7216, with resistance ahead at 0.7220 (Hourly 20 EMA), 0.7221 (Daily High), 0.7232 (Daily Classic S1), 0.7247 (Monthly Low) and 0.7247 (Weekly Low). Next support to the downside can be found at 0.7215 (Daily Classic S2), 0.7210 (Daily Open), 0.7210 (Daily Low), 0.7200 (Weekly Classic S1) and 0.7198 (Yesterday's Low). 

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