AUD/USD Price Analysis: Bears move in at key support ahead of GDP data
|- AUD/USD bears move in to sweep up the market below 0.6725 as the price extends out of a 100 pip box.
- The bulls could be waiting on the sidelines ahead of today's GDP.
The Aussie bulls are moving in at key support following a 125 pip move over the course of this week so far, falling from near 0.6835. The price would be expected to correct higher from here prior to the next potential move from the bears. The following illustrates the weekly template so far on the 1-hour chart ahead of today's key Gross Domestic Product data.
Analysts at ANZ bank explained that ''from a policy perspective it will be the inflation indicators in the GDP report that are key. The RBA’s preferred measure of wider labour costs – non-farm average earnings per hour – looks to have grown at an annual pace of just over 4% in the June quarter.''
This leaves a bullish bias on the charts for the data as indicated above given that labour costs are clearly trending higher. The analysts also note that ''household consumption deflator and broader GDP deflator also look to have risen strongly, suggesting still-intense inflationary pressures.''
We have resistance around 0.6735 as the price currently takes on the -38.2% extension of the prior bearish impulse. Above the resistance, eyes will be on the 0.6775 area around the Wall Street opening highs.
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