AUD/USD has been quite impulsive amid the bearish momentum after being rejecting off the 0.7300 area with a daily close. AUD has been quite firm in light of the fresh economic reports, but it failed to sustain the impulsive pressure over USD which might lead to a strong counter-move.
Last week Australia's Employment reports had a positive impact on AUD gains, leading to impulsive momentum and pushing the price towards 0.7300 which could not sustain further. The report revealed a significant increase in Australia's employment to 32.8k from the previous figure of 7.8k while Unemployment Rate remained unchanged at 5.0% which was expected to increase to 5.1%. Today Australia's MI Leading Index report was published with an increase to 0.1% from the previous value of 0.0%. Such data propped up AUD to push higher with a bounce off the 0.7200 area.
On the other hand, recently US Building Permits report was published with slight decrease to 1.26M as expected from the previous figure of 1.27M and Housing Starts increased to 1.23M as expected from the previous figure of 1.21M. Today US Core Durable Goods Orders report is going to be published which is expected to increase to 0.4% from the previous value of 0.0%, Durable Goods Orders could have decreased to -2.2% from the previous value of 0.7%, Unemployment Claims are likely to decrease to 215k from the previous figure of 216k, and Revised UoM Consumer Sentiment is expected to show a slight increase to 98.4 from the previous figure of 98.3. As the FED is expected to announce another rate hike next month and three more times in 2019, USD may get stronger for a certain period. On the other hand, the Rate Hike is going to hamper the long-term financial sector with a big margin.
In the meantime, AUD has been quite bullish with the gains today whereas USD is making impulsive remarkable gains. So, the pair is expected to continue pushing lower in the short term. Ahead of the high impact economic reports this week, any positive data from the US is expected to push the price much lower in the future. AUD is being on the sidelines with no major economic reports to put an impact in the current market situation.
Now let us look at the technical view. The price bounced off the 0.72 support area with strong bullish momentum today after several days of impulsive bearish pressure. At the current price formation, there are certain chances of price to continue pushing higher as it remains above 0.72 area with a daily close whereas a break below it may lead to further bearish momentum with a target towards 0.7050 support area in the future. As the price remains above 0.72, the bullish bias may continue pushing the price higher in the coming days.
SUPPORT: 0.7050, 0.7200
RESISTANCE: 0.7300, 0.7450-0.7500
BIAS: BULLISH
MOMENTUM: VOLATILE
