The overnight Asian session was calm with little currency moves. The AUD loses the most, even in spite of good business moods. The stock market is slightly positive. WTI goes over 70 USD.
On Monday 7th of May, there is a bank holiday in the UK, so the volatility may remain low. The event calendar is light in the important data releases, but the global investors should keep an eye on German Factory Orders data, CPI data from Switzerland and Sentix Investor Confidence data from Eurozone.
AUD/USD analysis for 07/05/2018:
AUD is the weakest on Monday and AUD/USD goes down to 0.7520. The market completely ignored data from the NAB institute, which pointed to the best business conditions since the start of research in 1997. The index rose in April to 21 out of 14. The business confidence indicator also increased - to 10 out of 7.
Let's now take a look at the AUD/USD technical picture at the H4 time frame. The main trend in this time frame is down, but the market conditions are now extremely oversold, so some kind of a corrective pull-back is being expected. So far the bounce was not too strong and a local high was made at the level of 0.7560 and the market looks locked in a horizontal zone between the levels of 0.7490 - 0.7560. The key technical resistance is seen at the level of 0.7578 - 0.7589 and only if this level is clearly violated, then the short-term bias will change to more bullish.
