AUD/USD has been impulsively bearish recently breaking below the support level of 0.7750. AUD has been quite negative with the economic reports recently which lead to a drastic fall of the currency against USD. Yesterday AUD CPI report was published with worse than expected value of 0.6% was expected to be at 0.8% which previously was at 0.2% and Trimmed Mean CPI report was published with a decreased value of 0.4% which was expected to be unchanged at 0.5%. On the other hand, USD was quite positive with the economic reports recently which lead to further gains against AUD. Today AUD Import Prices was published with greater deficit at -1.6% from the previous value of -0.1% which was expected to be at -1.5% and RBA Assistant Governor Debelle is going to speak about the nation's key interest rate decisions and future policy shifts which is expected to be quite neutral in nature. On the USD side, today Unemployment Claims report is expected to show an increase to 235k from the previous figure of 222k, Goods Trade Balance report is expected to show a greater deficit at -63.8B from the previous figure of -62.9B, Prelim Wholesale Inventories report is expected to decrease to 0.4% from the previous value of 0.9%, Pending Home Sales report is expected to show a positive shift to 0.2% from the previous negative value of -2.6% and Natural Gas Storage report is expected to published wish an increased figure of 61B from the previous figure of 51B. As of the current scenario, USD is expected to gain further over AUD in the coming days until AUD comes up with a positive high impact based economic reports or events.
Now let us look at the technical view, the price is currently residing below the resistance level of 20 EMA which was formerly a strong support level which was broken yesterday with a daily close. Price is currently expected to show the further bearish move towards 0.7500 support area in the coming days. As the price remains below the resistance area between 0.7750 to 0.7850 the bearish bias is expected to continue further in future.
