AUD/USD has been quite corrective in nature recently until today where it broke above the corrective structure with an impulsive bullish move. Today was an important day for the Aussie Dollar as a Cash Rate report was published alongside the RBA Policy Statement which declared the unchanged cash raet at 1.50% as expected. The news which helped the aussie to extend the bullish momentum in the market pushing the price much higher against USD. Along with it, AIG Service Index report was published with a decreased figure at 53.0 from the previous figure of 56.4 and Current Account showed a wider deficit figure at -9.6B from the previous figure of -4.8B which was expected to be at -7.9B. Despite the negative data in these medium-impact reports, AUD has surged higher and expected to show more growth in the coming days over USD. On the other hand, after the holiday of observing the Labor Day in US, today FOMC Member Brainard and FOMC Member Kashkari are going to speak about the nation's key interest rates and future monetary policies, their remarks are expected to be neutral in nature. Apart from the speeches, today US Factory Orders report is going to be published which is expected to be negative at -3.3% from the previous positive value of 3.0% and IBD/TIPP Economic Optimism report is expected to increase to 53.1 from the previous figure of 52.2. To sum up, USD is currently quite weaker with the economic reports against AUD which is expected to show some positive gains on AUD side for the coming days whereas USD will need consistent high impact positive reports to counter the bullish rally in this pair.
Now let us look at the technical chart. The price has been supported by the dynamic level of 20 EMA throughout last few days. The pair is likely to show some rise towards 0.8050-70 resistance area. As the price remains above the dynamic level of 20 EMA, the impulsive bullish move will continue and as the price remains above the support area of 0.7750-0.7840 the bullish bias is expected to continue further towards the resistance area.
