AUD/USD Current price: 0.7514
- Australian dollar unimpressed by rising inflation expectations, solid jobs' creation.
- Downward pressure to increase on a break below the 0.7470 support.
The AUD/USD pair started the day with a strong footing, peaking at 0.7547 on the back of positive, although unimpressive local data. Australian inflation expectations rose to 3.7% for May, from the previous 3.6% and according to estimates from the Melbourne Institute. The monthly employment report showed that the economy added 22,600 new jobs in April, although the unemployment rate ticked higher, to 5.6%. Fulltime employment was sharply up, while part-time jobs decreased by 10K. There are no macroeconomic news scheduled in Australia or China for the upcoming Asian session. The pair fell from the mentioned high but found buyers around 0.7500, now a few pips above this last and pretty much unchanged daily basis. The upside seems limited for the pair, particularly if it remains below 0.7565, the 38.2% retracement of the latest weekly decline, yet the short-term picture is neutral, as the Momentum indicator remains flat around its 100 level, while the RSI currently heads lower around 50. In the same chart, the price struggles around its 20 and 100 SMA, both confined to a tight range and slightly bearish. A break below 0.7470 should lead to a steeper decline this Friday.
Support levels: 0.7500 0.7470 0.7435
Resistance levels: 0.7565 0.7590 0.7625
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