AUDUSD Consolidates Above 200-Day MA in Thin Trading

AUDUSD trades 0.03% lower at 0.6919 in thin liquidity as most of the traders left their trading desks for the Christmas holidays. Positive headlines on phase one trade deal between China and the U.S. supports the Aussie dollar.

In the economic data yesterday the U.S. Durable Goods Orders in November dropped 2% below the analysts’ expectation for an increase of 1.5%. On the other hand, Durable Goods Orders Ex Defense increased by 0.8%. Also the Chicago’s Fed National Activity Index came in at 0.56 in November beating expectations of -0.09.

In Australia the unemployment rate dropped to 5.2% below market estimates of 5.3%. The strong job data might delay the next interest rate cut by the Reserve Bank of Australia.

Read our Best Trading Ideas for 2020.

AUDUSD Above the 200-day Moving Average

AUDUSD consolidates close to two week-highs as bulls are in control after the pair breached the 200-day moving average. The pair started the trading session above the 200-day moving average for the first time since March 2018. The last week AUDUSD pierced above the 200-day moving average  but failed to settle above that   level.

On the downside, initial support for AUDUSD stands at 0.6911 today’s low. Next support will be provided by the 200-day moving average at 1.1102. A break below will cancel the positive momentum and sellers might step in targeting the next level   at 0.6882 the low from December 20th.

The immediate resistance stands at 0.6929 the daily high. A convincing break above will further enhance the positive outlook. Next barrier to the upside is the high from December 13th at 0.6938. Long positions can sit comfortably as long as the pair trades above the 0.69.

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