Australian Dollar trades sideways against US Dollar near key averages – Societe Generale

Ahead of Australian CPI and the RBNZ decision, AUD/USD is outperforming G10 currencies after holding its March uptrend near 0.6900, according to Societe Generale’s Kenneth Broux and team. The pair is moving sideways around its 100-day moving average. The team identifies near-term resistance at 0.7050/0.7080 and short-term support at 0.6950, with a break above resistance potentially paving the way for a larger rebound.

Aussie maintains its footing at trend support

"AUD/USD defended the ascending trend line drawn since March near 0.6900, resulting in a brief rebound."

"The pair is now approaching the confluence of the 50-DMA and the 200-DMA at 0.7050/0.7080, which represents an important interim resistance zone."

"If AUD/USD overcomes this hurdle, a larger rebound cannot be ruled out."

"The low achieved last week at 0.6950 is a short-term support."

"Spot grinding sideways, glued to 100dma (0.7033), outperforms G10 with NZD ahead of Aussie September and 3Q CPI, and RBNZ interest rates decision tonight (consensus +25bp)."

"Support 0.6950, resistance 0.7080."

(An Artificial Intelligence tool assisted in creating this article, which was reviewed by an editor. Find out more.)