AUD/USD is currently struggling to make a directional impulsive move on either side whereas bulls are expected to be the dominant party in the coming days. After the interest rate hike of AUD, the currency has been quite impulsive with its gains which affected the USD and made it lose some grounds in the process. Today AUD AIG Manufacturing Index report is going to be published which is expected to have a better figure published from the previous figure of 56.0 and Commodity Price is also expected to rise as of the recent inflation decision, which previously was at 17.1%. On the other hand, today is a very important day for USD as a respectable number of high impact economic reports are going to be published today. Today USD Average Hourly Earnings report is going to be published which is expected to decrease to 0.2% from the previous value of 0.3%, Non-Farm Employment Change report is expected to decrease to 180k from the previous value of 209k, Unemployment Rate is expected to be unchanged at 4.3% and ISM Manufacturing PMI report is expected to have slight increase to 56.5 from the previous figure of 56.3. To sum up, the pair is expected to be very volatile due to high impact events of USD to be published today which will provide an upcoming directional signal to trade with. Any worse outcome of USD high impact economic reports will lead to further weakness of USD and strengthening of AUD for further gains in the future.
Now let us look at the technical view, the price is currently correcting above the support area of 0.7750-0.7840 and supported by the dynamic level of 20 EMA as well. As the price remains above the support area the bullish bias is expected to continue further with a target towards 0.8050 resistance level.
The material has been provided by InstaForex Company – www.instaforex.com