Moody’s Cut Australian growth forecast, AUDUSD Capped by 50-Day MA
AUDUSD trades in just 13 pips trading range after Moody’s credit rating reduced Australian growth forecast to 2.2% and the unemployment rate to 5% for 2020. In US on Friday macro data failed to impress investors, the Empire Manufacturing for November came in at 2.9, below expectations of 6.0. Advance Retail Sales for October rose 0.3%, beating the expected 0.2%, while Retail Sales Less Autos for October fell 0.2%, below forecasts of 0.4%.
RBA has already cut rates three times and sounded cautiously optimistic, pointed out that a turning point appears to have been reached.
The pair attempt to turn positive today ut rejected at the 50-day moving average. AUDUSD failed the in early November to break above the three-month highs at 0.6929 and started a correction; AUDUSD breached the 100-day moving average and bulls took control and also breached the 50-day moving average last Thursday.
On the downside, immediate support for AUDUSD stands at 0.6806 the today’s low and then at 0.6750 the low from October 17th. A credible move below that support level will open the way for a visit down to 10-year lows.
On the flip side, first resistance stands at 0.6819 today’s high and then at 0.6838 the 100-day moving average. Above that the next hurdle stands at 0.6936 the 200-day moving average. Investors might initiate long positions if the pair close convincingly above the 100-day moving average that might lead to three month highs.More content