AUD/USD has been quite bearish recently after bouncing off the 0.7870 area but the pair is now trading with high volatility. USD has been the weaker currency in the pair since the last bounce off the support area of 0.75. Till then USD did not get any chance to show strong resilience. AUD has been the dominant currency since the final quarter of 2017. The dominancy is expected to continue further but with short-term pullbacks along the way. Today, US Import Price report is going to be published which is expected to decrease to 0.4% from the previous value of 0.7%, Final Wholesale Inventories report is expected to be unchanged at 0.7%, and Crude Oil Inventories is expected to show less deficit to -3.9M from the previous figure of -7.4M. On the other hand, tomorrow Australia is going to present a Retail Sales report which is expected to slow a slight decrease to 0.4% from the previous value of 0.5%. Moreover, USD is quite strong ahead of the upcoming high impact economic reports to be published on Friday including Retails Sales and CPI reports. As for the current scenario, this week USD is expected to gain good momentum over AUD for a certain period of time. However, on the long-term basis AUD is expected to dominate further in the coming days.
Now let us look at the technical chart. The price is currently residing in a volatile corrective structure below 0.7870 area from where the price is expected to proceed lower towards 0.0.7730 support area in the coming days. As the price remains below 0.7870 with a daily close, the bearish bias is expected to continue further.
