(MENAFN- Daily Forex) Advertisement Bearish view
- Sell the pair and set a take-profit at 0.6400.
- Add a stop-loss at 0.6600.
- Timeline: 1-2 days.
Bullish view
- Set a buy-stop at 0.6550 and a take-profit at 0.6650.
- Add a at 0.6450.
The AUD/USD price continued consolidating on Thursday as focus shifts to the upcoming American non-farm payrolls (NFP) data. It was trading at 0.6500, which was slightly above this week's low of 0.6421.NFP data ahead
The AUD/USD continued consolidating after the Reserve Bank of Australia (RBA) started pivoting on interest rate hikes. On Tuesday, the bank decided to hike interest rates by 0.25% as it continued its fight against inflation. However, this increase was smaller than what it has been doing in the past few months.
It also signaled that the bank was worried about going too fast on rate hikes. Retail sales data published on Wednesday showed that the country's sales declined from 1.3% in August to 0.6% in September. This is notable because of the important role that the retail sector plays on the Australian economy.
The AUD/USD price also reacted mildly to the strong economic numbers published by the United States. In a report, the Institute of Supply Management (ISM) said that the non-manufacturing sector did well in September. The figure came in at 56.7, which was better than the median estimate of 57.0. A PMI reading of 50 and above is usually an encouraging factor.
The pair also reacted to America's trade numbers. According to the Commerce Department, total exports declined to $258.90 billion while imports fell to $326 billion. As a result, the trade deficit narrowed to over $67.40 billion.
The most important data came from ADP, which showed that the labor market did moderately well in September. The economy added 208k jobs in September after adding over 185k in the previous month. This increase was higher than the median estimate of 200k.
The next key data to watch will be US non-farm payrolls data scheduled for Friday. Thse numbers will provide more signal on whether the Fed will start to pivot soon.AUD/USD ForecastThe AUD/USD pair has been in a tight range in the past few days. It has struggled to find direction after the latest RBA decision. As a result, it has remind at the short and longer term moving averages. The pair has also formed a symmetrical triangle pattern, which is nearing its confluence level.
Therefore, it will likely have a breakout in the coming days. If this happens, the next level of support to watch will be at 0.6400.
Ready to trade our ? We've made a list of to trade Forex worth using.
MENAFN06102022000131011023ID1104976839
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.