The Australian Dollar (AUD) extended downside movement against the US Dollar (USD) on Thursday, dragging the price of AUDUSD to less than even 0.7350 while Gold consolidates near the multi-year low below the $1100 level amid US growth optimism.
The Australian dollar initially soared as the RBA kept rates on hold, but particularly because Governor Glenn Stevens signaled that the latest plunge in the Aussie has done enough to boost the economy. Stevens dumped his demand for a lower AUD for the first time this year, sending the AUD/USD up initially over 100 pips, and with the pair extending up to 0.7428 however later on focus shifted towards the Friday’s Nonfarm payrolls figure due to which the pair has given up almost half of the gains as of this writing.
Technically the one-hour chart shows that the 20 SMA heads sharply higher below the current price, offering an immediate support around 0.7260, whilst the technical indicators are retreating from extreme overbought territory.
In the four-hour chart, the Momentum indicator turned higher above the 100 level after correcting overbought readings, whilst the RSI indicator hovers around 61 and the 20 SMA heads higher below the current level, all of which should keep the downside limited in the short term.
Meanwhile, the price of gold consolidates near the multi-year low level below the $1100 zone on speculation a FED’s rate hike will take place as soon as next month.
The daily chart shows little progress as the technical indicators remain flat near oversold levels, whilst the 20 SMA has extended its decline above the current price, now standing at around $1084.
In the four-hour chart, the price is now below a horizontal 20 SMA, and the technical indicators below their mid-lines, all of them lacking directional strength. The base of the figure stands for this Wednesday at 1,081.90, which means that a price acceleration below the level may trigger additional declines towards the low set last July at 1,071.00.