Fundamental Analysis of AUD/USD for November 16, 2017

AUD/USD has been quite volatile with the recent bearish pressure since it broke below the 0.7750 price level. The price did not have much retest or stronger pullback towards the horizontal and dynamic level but still the bearish pressure was quite stable to push the price lower in a sustainable manner. Today, Australia's Employment Change report was published with a worse figure of 3.7k decreasing from the previous figure of 26.6k which was expected to be at 17.8k, Unemployment Rate report showed a slight decrease to 5.4% which was expected to be unchanged at 5.5%, and MI Inflation Expectations report also showed a decrease to 3.7% from the previous value of 4.3%.On the other hand, today US Unemployment Claims report is going to be published which is expected to have a better result of 235k decreasing from the previous figure of 239k, Import Prices is expected to decrease to 0.4% from the previous value of 0.7%, Philly Fed Manufacturing Index report is expected to decrease to 24.5 from the previous figure of 27.9, Capacity Utilization Rate is expected to have a slight increase to 76.3% from the previous value of 76.0%, and Industrial Production is expected to increase to 0.5% from the previous value of 0.3%. As for the current scenario, the economic reports from Australia was not quite up to the mark and did not contribute well into the gains of the aussie dollar against USD whereas most of the economic reports from the US today are forecasted to have mixed outcome which put the market into indecision now. If the US reports come better than expected that is the most probable scenario, then USD is set to advance further in the coming days.

Now let us look at the technical chart. The price is currently quite indecisive but with steady gains on the downside that indicates that the bears are still dominating the market. The price is residing below the resistance area of 0.7750-0.7850 alongside the dynamic level of 20 EMA, acting as resistance. As the price remains below the resistance area and dynamic level of 20 EMA, the bearish pressure is expected to continue further with target towards 0.7500 soon.

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The material has been provided by InstaForex Company - www.instaforex.com