AUD/USD looks healthier
Kira Iukhtenko, FX BAZOOKA analyst
At the beginning of the new week Aussie dollar has recovered some ground, staying supported by the $0.8900 mark. On Tuesday the pair hit $0.8970 on the back of the improved global risk sentiment. However, the morning RBA comment on the overvalued currency has become a new limiting factor for buyers.
In my view, the nice bullish correction in AUD will be contained by the $0.9000/10 resistance intraday. Rise above these levels is very unlikely in the near-term. Theoretically, a break above $0.9080 could become a strong bullish signal, confirming an inverse “head-and-shoulders” pattern. However, the existing funadamentals and technicals both speak in favor of shorting the Australian currency.
Australia is scheduled to release its Q4 GDP on Wednesday. The economy looked very steady, posting gains of 0.6% for four consecutive quarters. The estimate for Q4 stands at 0.7%. The figure below expectations will definitely send the Aussie below the $0.8900 support.
Chart. H4 AUD/USD