Source: Forex Analysis
AUD/USD has been quite in a corrective phase inside the range of 0.7500-50 area from where it is expected to push much lower in the coming days. Recently, AUD has been struggling amid economic reports which lead USD to gain non-volatile impulsive momentum over AUD since the price broke below 0.7750 area.
Today, Australia’s Employment Change report was published with a significant increase to 22.6k from the previous figure of -0.7k which was expected to be at 19.8k, MI Inflation Expectation slightly increased to 3.7% from the previous value of 3.6%, and the Unemployment Rate unexpectedly edged up to 5.6% whereas it was expected to be unchanged at 5.5%.
On the other hand, today US Unemployment Claims report was published with an unexpected increase to 222k from the previous figure of 211k which was expected to be at 216k and Philly Fed Manufacturing Index report was published with an increase to 34.4 from the previous figure of 23.2 which was expected to decrease to 21.1. Moreover, today US CB Leading Index report is going to be published which is expected to increase to 0.4% from the previous value of 0.3% and Natural Gas Storage is also expected to rise to 105B from the previous figure of 89B.
As for the current scenario, despite the mixed economic reports from Australia with an increase in Employment Change and also increase in Unemployment Rate, AUD extended weakness against USD. US economic reports published today have been quite impressive, besides upcoming US reports are also forecasted to show positive readings that might lead to further bearish pressure in the pair. To sum up, USD is expected to have an upper hand over AUD in the coming days.
Now let us look at the technical view. The price has rejected the bulls of the dynamic level of 20 EMA whereas with confluence to horizontal and dynamic resistance further bearish pressure is expected in this pair with a target towards 0.74 support area in the coming days. As the price remains below 0.7550 with a daily close, the bearish bias is expected to continue further.
The material has been provided by InstaForex Company – www.instaforex.com