AUD/USD Analysis: Australian data fuels the bearish case
|AUD/USD Current Price: 0.6890
- Australian employment data added pressure on RBA to cut rates.
- Inflation expectations coming up next could push the pair toward 0.6820.
The AUD/USD pair trades a couple of pips above its daily low of 0.6889, breaking at the end of the day the low reached early Asia, following the release of Australian employment data. The country added 28.4K new jobs in April, although it lost 6.3K fulltime positions, with part-time jobs up by 34.7K. The unemployment rate ticked up to 5.2%, while the participation rate surged to 65.8%. All in one, the report put more pressure on the RBA to cut rates. The pair bounced from the mentioned low but was unable to hold on to gains amid broad dollar's demand. It slowly declined throughout the American session, as the positive momentum of equities prevented the AUD/USD pair from collapsing. During the upcoming Asian session, Australia will release May Consumer Inflation Expectations, previously at 3.9%.
The absence of buying interest is quite evident, and technical readings are in line with a bearish extension, as, in the 4 hours chart, a strongly bearish 20 SMA keeps capping the upside while accelerating below the larger ones. Technical indicators in the mentioned chart remain whiting negative levels with limited bearish strength, yet with no signs of downward exhaustion.
Support levels: 0.6870 0.6820 0.6775
Resistance levels: 0.6930 0.6965 0.7000
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