AUD/USD Daily Forecast – Australian Dollar Remains Strong Ahead Of The Weekend

AUD/USD Video 11.12.20.

Australian Dollar Continues To Gain Ground Against U.S. Dollar

AUD/USD has recently made an attempt to settle above 0.7550 while the U.S. dollar was mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to get to the test of the yearly lows at 90.50 but failed to develop sufficient downside momentum. As a result, the U.S. Dollar Index remains in a range between the support at 90.50 and the resistance at 91. A move above the resistance level at 91 will push the U.S. Dollar Index towards the next resistance at 91.50 which will be bearish for AUD/USD.

Australian dollar has recently enjoyed strong support on the foreign exchange market due to the strength of commodity markets. Iron ore prices have recently moved to multi-year highs while WTI oil managed to get above the $47 level, providing support to commodity-related currencies.

Yesterday, U.S. reported that Initial Jobless Claims increased to 853,000 as the second wave of the virus started to put serious pressure on the job market. It remains to be seen whether the recent job market data will push U.S. lawmakers to intensify stimulus negotiations as U.S. House Speaker Nancy Pelosi has recently stated that these talks could stretch beyond Christmas.

Technical Analysis

AUD/USD gained strong upside momentum and tested the resistance level near 0.7575. RSI is in the overbought territory so the risk of a pullback is high. Currently, AUD/USD is trying to stay above the nearest support level at 0.7535.

In case AUD/USD settles below this support level, it will head towards the next support at 0.7500. A successful test of this support level will push AUD/USD towards the support at 0.7485.

On the upside, AUD/USD needs to stay above 0.7535 to continue its upside move. The next resistance level for AUD/USD is located near the recent highs at 0.7575. If AUD/USD manages to settle above this resistance level, it will gain additional upside momentum and head towards the next resistance at 0.7600.

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