Forex Market: AUD/USD daily trading outlook

Yesterday’s trade saw AUD/USD within the range of 0.7153-0.7303. The pair closed at 0.7184, plummeting 1.38% on a daily basis, or the most since December 17th 2015, when a daily drop of 1.45% was registered. The daily low was a higher-low test of the low from December 21st and also of the weekly S3 level.

At 11:00 GMT today AUD/USD was losing 0.29% for the day to trade at 0.7169. The pair touched a daily low at 0.7167 at 11:01 GMT and a daily high at 0.7215 during mid-Asian trading session. Support may be received at the low from January 4th (0.7153) and after that – at the low from December 18th 2015 (0.7108). Resistance may be encountered at the psychological 0.7200 level and after that – in proximity to the hourly 200-period EMA (0.7222).

On Tuesday AUD/USD trading may be influenced by the macroeconomic report listed below.

Fundamentals

Australia

AiG Performance of Services Index

At 22:30 GMT on Tuesday the Australian Industry Group (AIG) is expected to announce the results from its survey on short-term and intermediate-term conditions in the country’s services sector during December. Surveyed companies answer questions associated with production, employment, prices, supplier deliveries, inventories and new orders. The seasonally adjusted Performance of Services Index (PSI) remained in the zone of contraction for a second consecutive month in November, coming in at 48.2. It has been the lowest index reading since December 2014, when the gauge was reported at 47.5. In October the PSI stood at 48.9. Values below the key level of 50.0 are indicative of pessimism (lower activity). In case the December index went deeper in the area of contraction, it may have a limited-to-moderate bearish effect on the Aussie.

Daily and Weekly Pivot Levels

By employing the traditional calculation method, the daily pivot levels for AUD/USD are presented as follows:

Central Pivot Point – 0.7213
R1 – 0.7274
R2 – 0.7363
R3 – 0.7424

S1 – 0.7124
S2 – 0.7063
S3 – 0.6974

By using the traditional method of calculation again, the weekly pivot levels for AUD/USD are presented as follows:

Central Pivot Point – 0.7283
R1 – 0.7324
R2 – 0.7369
R3 – 0.7410

S1 – 0.7238
S2 – 0.7197
S3 – 0.7152