AUD/USD (current price: 0.7211)
The Australian Dollar has been trading sideways since dropping below the 200-day MA and hitting support near 0.715 last week. The bullish New Zealand Trade Balance release helped the neighboring country as well, despite the negative surprise from the Australian Construction Work number. The currency remained below the 200-day MA near 0.725, with a strong support zone around 0.715. The MACD momentum indicator is showing oversold readings, making a meaningful bounce likely in the coming weeks.
Our assessment: The pair continues to consolidate in a narrow short-term trading range with the 200-day MA and the 0.715 level limiting its movement on the upside and the downside respectively.
