(MENAFN- Daily Forex) Bearish View
Sell the AUD/USD pair and set a take-profit at 0.6430. Add a stop-loss at 0.6625. Timeline: 1-2 days.
Bullish View
Set a buy-stop at 0.6575 and a take-profit at 9.6625. Add a stop-loss at 0.6450.
The AUD/USD exchange rate's sell-off eased after Australia published stronger-than-expected inflation data on Wednesday. It also reacted to the strong ADP jobs report and the US third-quarter
GDP data. It was trading at 0.6577 on Thursday, a few points below this week's low of 0.6537.
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The AUD/USD pair wavered after the Australia's statistics agency released stronger-than-expected inflation data. The headline consumer price index dropped from 3.8% in Q2 to 2.8% in Q3, higher than the expected 2.3%.
More data showed that the closely-watched weighted mean CPI fell from 4.2% to 3.8%, higher than the expected 3.6%. The trimmed mean CPI moved from 3.9% to 3.5%.
These numbers mean that the country's inflation remains stubbornly high, meaning that the Reserve Bank of Australia (RBA) may not be in a hurry to cut interest rates as soon as expected. Altogether, it will be the last major central bank to cut interest rates.
The AUD/USD pair also reacted to the latest ADP jobs report for August. In a statement, the company estimated that the economy created 233k jobs in October, higher than the expected 110k.
A separate report by the Bureau of Economic Analysis (BEA) showed that the economy expanded by 2.8% in the third quarter, missing the expected growth of 3.0%. Another data by the National Association of Realtors showed that pending home sales rose by 7.4% in September after growing by 0.6% in the previous month.
The next two days will be important for the AUD/USD pair as the US will publish the latest personal consumption expenditure (PCE) and NFP data. Analysts expect the data to show that the PCE eased slightly in September/USD Technical Analysis
The AUD/USD exchange rate continued falling this week after the latest Australia inflation report.
EURUSD Chart by TradingView
It has dropped below the key support at 0.6621, its lowest point on September 11. The pair has also fallen below the first support of the Woodie pivot point.
At the same time, the MACD indicator and the Money Flow Index (MFI) have all pointed downwards. The pair has remained at the lower side of the Bollinger Bands.
Therefore, the path of the least resistance for the pair is downwards, with the next point to watch being at 0.6430, the third support of the Woodie pivot point.
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