AUDUSD retreats 0.16% at 0.6839 despite National Australia Bank’s Business Confidence came in at 2, topping expectations of 0 in October, while the Business Conditions came in at 3, topping expectations of 2 in October.
RBA has already cut rates three times and sounded cautiously optimistic, pointed out that a turning point appears to have been reached.
Australia’s growth has been cut for full-year 2019 and next year as the IMF predicts a weak year for the global economy. World Economic Outlook, predicts Australia to grow at 1.7% in 2019, down from a predicted 2.1%.
AUDUSD Technical Levels to Watch
The pair failed the previous week to break above the three-month highs at 0.6929 and started a correction; AUDUSD breached the 100-day moving average and continues today lower as the short term outlook turns bearish.
On the downside, first support for AUDUSD stands at 0.6831 the today’s low and then at 0.6814 the 500-day moving average, while more bids will emerge at 0.6750 the lows from October 17th. A sustained move below will open the way for a visit down to 10-year lows.
On the flip side, first resistance stands at 0.6856 today’s top and then at 0.6929 the high from October 31st above that the next hurdle stands at 0.6941 the 200-day moving average. Investors might initiate long positions if the pair close convincingly above the 100-day moving average for a second attempt to three month highs.