AUD/USD Analysis: bulls keep trying, but fear prevails

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7169

Australian March employment data could give the Aussie another impulse.
Dismal equities' behavior pushed the pair away from fresh highs.

The AUD/USD pair jumped to 0.7205, its highest in almost two months, during the previous Asian session, as Chinese first-tier data surprised positively. According to the National Bureau of Statistics, Chinese Retail Sales were up by 8.7% YoY in March, while Industrial Production expanded by 8.5%, both beating the market's forecasts. Furthermore, Q1 GDP came in at 6.4%, slightly above the 6.3% expected. Also, the Australian Westpac Leading Index was marginally higher in March, helping lift the Aussie. The dismal behavior of US equities, however, sent the pair back to its comfort zone around the 0.7170 price zone.

Australia will release March employment data, with the country seen adding 12.0K new jobs in the month, and the unemployment rate seen ticking up to 5.0% from the current 4.9%. Worse than expected readings will likely weigh less than positive ones.

The AUD/USD pair is developing within an ascendant channel, pretty much since the month started, moving back and forth around its 20 SMA in the 4 hours chart and moving above and away from the larger ones, somehow suggesting that bulls retain control despite the absence of follow-through. In the same chart, technical indicators retreated to negative levels, now losing their downward strength, failing to confirm the next directional move but overall in line with the idea that the risk is skewed to the upside.

Support levels: 0.7135 0.7090 0.7055

Resistance levels: 0.7205 0.7250 0.7280

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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