AUD/USD Daily Forecast – Australian Dollar Pulls Back Ahead Of The Weekend

AUD/USD Video 12.03.21.

Australian Dollar Is Under Pressure Against U.S. Dollar

AUD/USD is currently trying to settle below the 20 EMA at 0.7755 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has managed to settle above the resistance at 91.50 and is trying to settle above the next resistance at 91.75. If this attempt is successful, AUD/USD will move towards the next resistance at the 92 level which will be bearish for AUD/USD.

Yesterday, the U.S. reported that Initial Jobless Claims declined from 754,000 to 712,000 while Continuing Jobless Claims decreased from 4.34 million to 4.14 million. The reports indicated that the U.S. job market continued to recover, although this recovery is not fast.

Today, foreign exchange market traders will have a chance to take a look at the preliminary U.S. Consumer Confidence data for March. Analysts expect that Consumer Confidence increased from 76.8 in February to 78.5 in March as mass vaccination program and the stimulus package improved consumer mood.

Traders will also continue to monitor the developments in the U.S. government bond market front. Treasury yields gained upside momentum and moved closer to recent highs, providing support to the American currency. If Treasury yields continue their upside move, the U.S. dollar will get more support.

Technical Analysis

AUD/USD is currently trying to settle below the support at the 20 EMA at 0.7755. In case this attempt is successful, AUD/USD will head towards the next support level which is located at the 50 EMA at 0.7725.A move below the 50 EMA will push AUD/USD towards the next support at 0.7700.

On the upside, AUD/USD needs to get back above the 20 EMA to have a chance to develop upside momentum in the near term.

The next resistance level for AUD/USD is located at 0.7780. If AUD/USD manages to settle above this level, it will head towards the resistance at the recent highs at 0.7800. A move above the resistance at 0.7800 will push AUD/USD towards the next resistance at 0.7820.

For a look at all of today’s economic events, check out our economic calendar.