AUD/USD Analysis: bears waiting for employment data to add to shorts
|AUD/USD Current Price: 0.6927
- Australia to release April employment data, unemployment rate seen ticking up.
- Chinese data missed expectations reviving concerns about an economic slowdown.
The AUD/USD pair continued its bearish route this Wednesday, falling to 0.6914, a level last seen early January to finally close at 0.6928. Australian data released at the beginning of the day came in worse-than-anticipated, with the May Westpac Consumer Confidence Index contracting to 0.6% from 1.9% previously, and Q1 Wage Price index up by 0.5% vs. the 0.6% expected. Chinese data followed suit, as Retail Sales advanced by 7.2% in April, well below the expected 8.6%, while Industrial Production in the same month rose by 5.4%, vs. the previous 8.5% and the expected 6.5%. The decline was limited by bouncing equities, yet the bearish case reaffirmed by Chinese woes will likely keep the Aussie falling. This Thursday, Australia will release April employment data. The country is expected to have added 14.0K new jobs in the month, while the unemployment rate is seen ticking higher to 5.1%. The variation in full-time positions will also be closely watched.
The AUD/USD pair consolidates at daily lows with no signs of changing course, according to technical readings in the 4 hours chart, still developing far below sharply bearish moving averages, and with technical indicators consolidating well into the red, lacking upward strength. The key support is now the 0.6900 level, with a break below it exposing a major static one at 0.6820.
Support levels: 0.6900 0.6870 0.6820
Resistance levels: 0.6930 0.6965 0.7000
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