AUD/USD Forecast: Resuming gains, eyes on employment data

AUD/USD Current Price: 0.7738

• Australian Westpac Consumer Confidence print at -4.5% in January.
• Australia is expected to have added 50K new jobs in December.
• AUD/USD has recovered its bullish stance, could reach fresh multi-year highs.

The Australian dollar was able to recover against its American rival to trade as high as 0.7760.  The pair found support on Wall Street fresh record highs, and gold prices, as the bright metal surged to $1,870 a troy ounce.  The aussie was supported by sentiment, as Australian data fell short of impressing. Westpac Consumer Confidence printed at -4.5% in January, down from 4.1% in the previous month.

This Thursday, Australia will publish December employment data. The country is expected to have added 50K new jobs in the month, while the unemployment rate is seen contracting to 6.7% from 6.8% in November. Also, the country will publish January Consumer Inflation Expectations, previously at 3.5%.

AUD/USD short-term technical outlook

The AUD/USD pair is bullish, and will likely accelerate its advance on upbeat data. The 4-hour chart shows that it has advanced above all of its moving averages, while technical indicators remain within positive levels. The Momentum has partially lost its bullish strength, but the RSI keeps advancing, now around 57. Further gains are likely on a break above 0.7770, the immediate resistance level, towards fresh multi-year highs beyond 0.7815.

Support levels: 0.7700 0.7655 0.7620  

Resistance levels:  0.7770 0.7815 0.7850

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