AUD/USD analysis: key resistance now at 0.7225
AUD/USD Current price: 0.7197
- Upward corrective rally set to continue, depending on Chinese data.
- Trump cooled down hopes for a US-China trade deal, but Aussie held on to gains.
The AUD/USD pair hovers around 0.7200 ahead of Friday's opening, with the Aussie boosted at the beginning of the day but an upward surprise in the monthly employment report, later fueled by rallying equities. Australia added 44,000 with 33,700 of those being in full-time positions, while the unemployment rate remained steady at 5.3%, in spite of a higher participation rate of 65.7%. The underutilization rate fell to 13.4%, the lowest level in over five years, this last an encouraging sign of future wage growth. The pair peaked at 0.7228 with the release of softer-than-expected US data and a strong rally in Wall Street. Demand for the Aussie eased following Trump comments, as the US President implied that the US does not need a trade deal with China, but China does need a trade deal with the US. Nevertheless, the pair held on to gains. During the Asian session, attention will center on Chinese data, as the Asian giant will release Retail Sales, Industrial Production and FDI figures for August.
The pair is technically bullish according to readings in the 4 hours chart, although it's still struggling to clear the 0.7200 level. In the 4 hours chart, technical indicators maintain their strong upward slopes at monthly highs and near overbought readings, while the 20 SMA gains upward traction well above the current level. In the same chart, the pair hit a major dynamic resistance, a bearish 100 SMA currently at 0.7225. Gains beyond it will probably anticipate a continued advance, with market players then eyeing the 0.7300 figure.
Support levels: 0.7165 0.7130 0.7095
Resistance levels: 0.7225 0.7260 0.7300
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.
