Source: Forex Analysis
AUD/USD is currently showing some bearish pressure after bouncing off the resistance area of 0.8020-80. The pair has been in a non-volatile bullish trend after breaking above the 0.7400 level. This week AUD economic reports were quite mixed helping the currency to push higher against USD, against which AUD is currently quite weak in nature. Recently, Australia’s NAB Business Confidence report showed a decrease to 5 from the previous figure of 12; today’s Westpac Consumer Sentiment data from Australia showed an increase to 2.5% from the previous negative value of -1.2%. On the UD side, today the PPI report was published with worse than expected figure at 0.2% in comparison with expectations for 0.3% and the previous figure of -0.1%. The core PPI report was also published with a worse figure at 0.1% (vs. 0.2% expectations and previous score -0.1%) and Crude Oil Inventories report showed growth to 5.9M from the previous figure of 4.6M, which was expected to decrease to 4.1M. Despite the downbeat economic reports from the US published today, AUD could not gain over USD, which does signal the severe weakness of AUD in comparison to USD. As of the current situation, USD is expected to show some short-term gains over AUD in the coming days until AUD comes up with better economic reports and events to push the price higher.
Now let us look at the technical view, after surging up higher in non-volatile manner the price has recently bounced off the resistance area of 0.8020-80. The price has formed the Bearish Regular Divergence recently and more bearish pressure is expected in this pair with a target towards the support area of 0.7750-0.7830. While the price remains below the resistance area of 0.8020-80, the bearish pressure is expected to continue further.
The material has been provided by InstaForex Company – www.instaforex.com