AUD/USD Current price: 0.7521
- Australia expected to have added 20,000 new jobs in April, unemployment rate steady at 5.5%.
- AUD/USD surges on the back of rising equities, better performance of base metals.
Commodity-related currencies are the best performers against the greenback this Wednesday, up on the better mood around equities and bouncing base metals. The AUD/USD pair recovered from the 0.7466 low achieved at the beginning of the day to settle above 0.7500, ahead of Australian critical data. The country's macroeconomic figures released at the beginning of the day were quite discouraging, as consumer sentiment fell in May according to Westpac, printing -0.6%, while wage price inflation was up 0.5% in the first three months of the year, missing market's expectations of 0.6%. Nevertheless, attention now shifts to the Melbourne Institute Inflation expectations for May, latest at 3.6%, and the monthly employment report. The unemployment rate is expected to have remained at 5.5% in April, while the market anticipates that 20,000 new jobs were added in the month. As most world central banks, the RBA bases its decisions in employment and inflation levels, with both figures then, being quite relevant for AUD's trend. The 4 hours chart shows that the pair is currently at its daily highs, struggling with bearish 20 and 100 SMA, and with technical indicators recovering ground with uneven strength, the Momentum still shy, but the RSI firmly up at around 55. The main resistance from here is 0.7565 the 38.2% retracement of its latest decline, with really solid figures required to see the pair breaking above it.
Support levels: 0.7500 0.7470 0.7435
Resistance levels: 0.7565 0.7590 0.7625
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