Fundamental Analysis of AUD/USD for December 14, 2017

AUD/USD has been quite impulsive with the bullish gains after bouncing off the support area of 0.75 recently. Despite the increase in Federal Funds Rate report the price has moved higher dominating the USD all the way. Today AUD MI Inflation Expectation report was published with an unchanged value of 3.7%, Employment Change report was published with a significant increase to 61.6k from the previous figure of 7.8k which was expected to be at 18.1 and Unemployment Rate remained unchanged at 5.4% as expected. The positive economic reports did help the currency to gain more against USD which is expected to last for the coming days. On the USD side, today Core Retail Sales report is going to be published with an increase to 0.6% from the previous value of 0.1%, Retail Sales is expected to increase to 0.3% from the previous value of 0.2%, Unemployment Claims is expected to have a slight increase to 237k from the previous figure of 236k and Import Prices is expected to increase to 0.7% from the previous value of 0.2%. The USD high impact economic reports have been quite optimistic today with the forecasts, if the economic reports publish better results then the USD is expected to regain its momentum over AUD which might lead to further bearish pressure in the pair. To sum up, AUD was quite ahead of USD after the Federal Funds Rate hike whereas the positive economic reports have added to the impulsiveness. Unless USD presents with better economic reports in the coming days AUD is expected to gain more momentum.

Now let us look at the technical view, the price is currently quite impulsive with the bullish momentum breaching above the dynamic level of 20 EMA resistance as well. The price has also breached the recent lower high which does indicate a change in trend as well where the price is currently expected to reach the resistance area of 0.7750-0.78 in the coming days. As the price remains above 0.75 support area the bullish bias is expected to continue further.

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