AUD/USD has been in a bearish trend since it bounced off the resistance area of 0.8020-80 recently. AUD has been recently had negative bias having worse economic reports and dovish statements whereas USD has been quite positive. Today AUD HIA New Homes Sales report was published with an increase to 9.1% from the previous negative value of -3.7%, Building Approvals showed some increase to 0.4% from the previous value of -1.2% but could not meet the expectation 1.1% and Along with RBA Rate Statement the Cash Rate report was published unchanged as expected at 1.50%. On the USD side, today FOMC Powell is going to speak about the nation's key interest rates and upcoming monetary policies which are expected to be neutral in nature and Total Vehicle Sales report is expected to show an increase to 16.9M from the previous figure of 16.1M. To sum up, AUD has been quite bearish in nature having mixed economic reports today which does signal that AUD is quite weaker in nature than USD. If USD economic reports and events results are positive today, then we will be expecting a further bearish move in this pair for the coming days.
Now let us look at the technical view, the price is currently residing in the support area of 0.7750-0.7830 which is expected to hold the price from further bearish pressure. If price breaks below the lower support of 0.7750 with a daily close then we will be expecting a further bearish move towards 0.7630 support level and on the other hand if the price breaks above the 0.7830 higher support level with a daily close then we will be looking forward to buying towards 0.80 again. As the price remains below the dynamic level of 20 EMA with a daily close we will be in bearish bias.
