AUDUSD Bulls Need to Break Above 0.6780

AUDUSD trades 0.30% higher at 0.6752, recovering yesterday’s lows after three consecutive positive days rebounding from 10-year lows. On the data front, the pair getting a hand from Australia business confidence, which came in at 0 the previous reading was 1 while the business conditions came in at 2 from the previous reading of 1. China’s Caixin Composite PMI came in at 51.9 in September from 51.6 in August.

AUDUSD hit 10-year lows after the Reserve Bank of Australia cut interest rates by 25 basis points to 0.75%. RBA left the doors open for further cuts in the future as the Australian economy is at “a gentle turning point”. Reserve Bank of Australia might cut to ‘support sustainable growth in the economy, full employment and the achievement of the inflation target over time’.

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AUDUSD Support and Resistance Levels

AUDUSD technical outlook is still bearish despite the rebound from 10-year lows as the pair continues to trade below all daily moving averages. On the upside now first resistance stands at 0.6764 yesterday’s high and then at 0.6780 the 50-day moving average while next hurdle stands at 0.6868 the 100-day moving average. On the downside, first support for AUDUSD stands at 0.6727 today’s low, while more bids will emerge at 0.6701 the low from October 3rd session. A break below will open the way for a visit down to 10-year lows. Bulls need a break above the 50-day moving average to cancel the recent downtrend.Download our latest quarterly market outlook for our longer-term trade ideas.

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