AUD/USD is still trading with high volatility and somehow progressing upwards in a corrective manner. After the FOMC meeting minutes, AUD was quite powerful and picked up steam. Today, AU Private Capital Expenditure report was published. It revealed a private capex contraction at -2.1% in Q4, which was expected to be -0.4%. Following the report, AUD had a drastic fall from the 0.7710 area to below the support of 0.7688. Currently AUD is gaining some strength over USD but the unemployment claims report is to be published in a few hours. The number of initial jobless claims is expected to increase by 242k in February, up from a 239k rise in January. If the report on the US labor market reveals negative figures, AUD is expected to advance further towards the resistance area between 0.7730-50.
Now let us look at the market from the technical viewpoint. Currently price is just above the support level 0.7688. In case price remains above this level, a good amount of bullish pressure will continue, so the price is set to rise towards the next resistance area of 0.7730-50. Market is volatile and corrective as well but lower highs does signal an upcoming bullish move towards the resistance, though USD is influenced by first-tier economic data today.
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