AUD/USD managed to climb higher bouncing off the 0.7200 area with a daily close after pushing lower impulsively off the 0.7300 area earlier. Despite mixed economic reports from Australia, AUD managed to gain momentum over USD. Recently, USD growth is capped by softer rhetoric of Federal Reserve and downbeat US non-farm payrolls for November.
This week Australia Home Loans report was published with an increase to 2.2% from the previous negative value of -1.0% which was expected to be at -0.5%, HPI decreased to decreased to -1.5% as expected from the previous value of -0.7%, NAB Business Confidence decreased to 3 from the previous figure of 5, and Westpac Consumer Sentiment also decreased to 0.1% from the previous value of 2.8%. Today MI Inflation Expectation report was published with an increase to 4.0% from the previous value of 3.6% and RBA Bulletin was quite positive with the Merchant payment surcharges. Today's positive economic reports provided the required momentum to AUD to sustain its gains over USD.
On the other hand, traders prefer to sell USD which has been hurt by the recent economic reports. Recently US CPI report was published with a decrease to 0.0% from the previous value of 0.3% which made USD lose ground. Today US Import Prices report is going to be published which is expected to decrease to -1.0% from the previous value of -0.5% and Unemployment Claims is expected to decrease to 226k from the previous value of 231k. US Retail Sales report is due tomorrow which is also expected to show a decrease to 0.2% from the previous value of 0.7%.
To sum it up, USD could not assert strength due to the latest economic reports and weak expectations for the upcoming economic reports. Though AUD has managed to gain certain momentum over USD, the aussie is expected to extend gains until the US comes with solid economic results or events to trigger USD counter-move in the coming days.
Now let us look at the technical view. The price is currently residing above 0.7200 area with a daily close while being held by the dynamic level of 20 EMA as resistance. The price is still under certain bearish bias and expected to continue pushing lower as the price breaks below 0.7200 area with a daily close in the coming days. As the price remains below 0.7300 area, the bearish bias is expected to continue with a target towards 0.7050 support area in the future.
SUPPORT: 0.7050, 0.7200
RESISTANCE: 0.7300, 0.7400
BIAS: BEARISH
MOMENTUM: VOLATILE
