AUD/USD Daily Forecast – U.S. Dollar Tries To Gain Ground Against Australian Dollar

AUD/USD Video 08.12.20.

Australian Dollar Is Under Some Pressure Against U.S. Dollar

AUD/USD is currently trying to move below the support at 0.7415 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to get to the test of the nearest resistance at the 91 level. If the U.S. Dollar Index manages to settle above this level, it will gain upside momentum and head towards the next significant resistance level at 91.50 which will be bullish for AUD/USD.

Today, Australia reported that Business Confidence increased from 3 (revised from 5) in October to 12 in November. Analysts expected that Business Confidence would increase to 6. Meanwhile, the third-quarter House Price Index increased by 4.5% year-over-year compared to analyst forecast which called for growth of 7.1%.

Today, AUD/USD traders will focus on the news about U.S. stimulus negotiations. Yesterday, U.S. House Speaker Nancy Pelosi stated that coronavirus relief aid would be included in the government funding bill. She also added that negotiations were making progress.

In recent weeks, vaccine optimism and stimulus hopes put significant pressure on the U.S. dollar on the foreign exchange market. However, it remains to be seen whether the new round of stimulus will put additional pressure on the American currency or the new coronavirus aid package is already priced in.

Technical Analysis

AUD/USD is currently trying to move below the nearest support level at 0.7415. If AUD/USD manages to settle below this level, it will get to the test of the next support at 0.7400.

A move below the support at 0.7400 will push AUD/USD towards the support at 0.7380. If AUD/USD declines below the support at 0.7380, it will head towards the next support level near the 20 EMA at 0.7360.

On the upside, AUD/USD needs to stay above 0.7415 to have a chance to develop upside momentum. The next resistance level for AUD/USD is located at 0.7440. A move above this level will push AUD/USD towards the recent highs at 0.7450.

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