AUD/USD recovering in a minor correction below bearish 4hr 20 sma

Currently, AUD/USD is trading at 0.7932, up +0.13% on the day, having posted a daily high at 0.7939 and low at 0.7925.

AUD/USD is making a recovery above 0.7920 support after last week's nonfarm payrolls solid report. The dollar was surging on the back of the data and the antipodeans took a knock extending the downside from 0.8060 recent highs.

Domestically, last week came with the RBA's August statement on monetary policy. Analysts at Westpac explained that from a policy perspective, the Bank’s forecasts of growth lifting to well above trend in 2018 and 2019, and inflation returning to the middle of the target band in 2019 would imply that it is expecting to be raising rates probably in the second half of 2018.

"However," the analysts added, "the Bank has the luxury to delay any rate decisions until it can clearly test whether its forecast dynamics around higher consumer spending growth, a solid lift in investment spending, rising wages growth, benign housing developments and falling unemployment (along with what we suspect a falling AUD) come to pass. We are much less confident about that scenario and therefore expect rates to remain on hold next year."

AUD/USD levels

AUDUSD: Trading from the short side 

"In the 4 hours chart, the price remains below a bearish 20 SMA, while technical indicators lost upward strength within negative territory following a limited upward correction, in line with the longer term perspective," explained Valeria Bednarik, chief analyst at FXStreet adding, "the main support is the 0.7870 level, as the pair bounced from the region on attempts to break lower during the past two weeks."