AUD/USD has been residing inside a corrective range between 0.73 to 0.75 area for a while now from where it is expected to push lower with the long-term trend in the coming days. USD has been quite mixed with the recent economic reports which lead the currency to struggle to maintain the momentum it had over AUD earlier in the process.
Ahead of the AUD Trade Balance report tomorrow which is expected to increase to 0.91B from the previous figure of 0.83B and Retail Sales report to be published on Friday which is expected to slight decrease to 0.3% from the previous value of 0.4%, the currency is currently struggling to sustain the momentum it gained inside the range after bouncing off the 0.73 area recently. Today AUD AIG Manufacturing Index report was published with a decrease to 52.0 from the previous figure of 57.4 which is assumed to lead the currency to certain weakness being observed currently. Moreover, today AUD Commodity Prices report is going to be published which is expected to increase from the previous value of 6.6%.
On the other hand, ahead of the NFP report to be published this week, USD has been performing quite well currently and today USD ADP Non-Farm Employment Change report is going to be published which is expected to increase to 186k from the previous figure of 177k, ISM Manufacturing PMI is expected to slightly decrease to 59.4 from the previous figure of 60.2 and Crude Oil Inventories report is also expected to increase to -2.6M from the previous figure of -6.1M.
As of the current scenario, AUD has been struggling with the recently published economic reports whereas USD having high impact economic reports yet to be published, is expected to gain further momentum over AUD in the process. As USD publishes better than expected economic reports results, further gain on the USD side is expected at this moment.
Now let us look at the technical view. The price has been inside the range for a while now and recently it created a lower high below 0.75 area with an impulsive bearish momentum currently which is expected to push the price lower towards 0.73 area in the coming days. The price is currently residing at the edge of dynamic level support which is expected to be taken out with certain bearish momentum in the process. As the price remains below 0.75 area with a daily close, the bearish bias is expected to continue further.
RESISTANCE: 0.75
SUPPORT: 0.73
BIAS: BEARISH
MOMENTUM: CORRECTIVE AND VOLATILE
