AUD/USD Daily Forecast – Resistance At 0.7715 Remains Strong

AUD/USD Video 10.03.21.

Australian Dollar Is Losing Ground Against U.S. Dollar

AUD/USD is currently trying to settle below the support at 0.7700 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is stuck in the range between the support at 92 and the resistance at 92.25. In case the U.S. Dollar Index manages to settles above the resistance at 92.25, it will continue its rebound and head towards the next resistance at the recent highs at 92.50.

Today, Australia reported that Consumer Confidence improved from 109.1 in February to 111.8 in March. Australia’s Consumer Confidence continues to move higher thanks to the country’s success in virus containment.

Meanwhile, the final reading of Building Permits report for January indicated that Building Permits declined by 19.4% on a month-over-month basis. This is not surprising given the rapid increase in Building Permits at the end of 2020.

Foreign exchange market traders will soon have a chance to take a look at the latest inflation data from the U.S. Analysts expect that Inflation Rate grew by 1.7% year-over-year in February while Core Inflation Rate increased by 1.4%. Any signs of higher inflation will push Treasury yields higher and may provide additional support to the American currency.

Technical Analysis

AUD/USD is testing the nearest support level at 0.7700. If this test is successful, AUD/USD will move towards the next support level at 0.7665.

In case AUD/USD declines below this level, it will head towards the support at the recent lows at 0.7635.  A move below the support at 0.7635 will open the way to the test of the support at 0.7600.

On the upside, AUD/USD needs to get back above 0.7700 to have a chance to develop upside momentum in the near term. The next resistance level for AUD/USD is located at the 50 EMA at 0.7715. If AUD/USD manages to settle above the 50 EMA, it will gain additional upside momentum and move towards the next resistance which is located at the 20 EMA at 0.7745.

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