Australian Dollar: Sideways grind near key averages against US Dollar – Societe Generale

Societe Generale’s Kenneth Broux and team note AUD/USD has defended its March uptrend near 0.6900 and is trading sideways around the 100-day moving average, outperforming G10 currencies ahead of Australian CPI and the RBNZ decision. They highlight nearby resistance at 0.7050/0.7080, with short-term support at 0.6950 and scope for a larger rebound if resistance breaks.

Aussie holds trend support

"AUD/USD defended the ascending trend line drawn since March near 0.6900, resulting in a brief rebound."

"The pair is now approaching the confluence of the 50-DMA and the 200-DMA at 0.7050/0.7080, which represents an important interim resistance zone."

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"If AUD/USD overcomes this hurdle, a larger rebound cannot be ruled out."

"The low achieved last week at 0.6950 is a short-term support."

"Spot grinding sideways, glued to 100dma (0.7033), outperforms G10 with NZD ahead of Aussie September and 3Q CPI, and RBNZ interest rates decision tonight (consensus +25bp)."

"Support 0.6950, resistance 0.7080."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)