AUD/USD has been impulsively bullish recently with a very little retracement along the way. Due to disappointing consumer inflation data and dovish speech from RBA Officials recently, AUD has been weaker today. Despite the unchanged interest rates, USD has managed to gain some strength over AUD today which signals the weakness of AUD. Today AUD Import Price report was published negative at -0.1% from the previous value of 1.2%. It was expected to decrease to 0.7%. Amid the report, AUD has lost ground against USD today and the downward trend is expected to continue in the coming days. On the USD side, today the Core Durable Goods Orders report was published with a decreased figure of 0.2% from the previous value of 0.3% which was expected to increase to 0.4%. The Unemployment Claims report was also published with a bad outcome with an increase to 244k from the previous value of 234k which was expected to be at 240k. However, the Durable Goods Orders report was more positive with an increase to 6.5% from the previous value of 0.8% which was expected to increase to 3.8%. On top of these high-impact reports, some medium-impact reports were also published. Thus, the Goods Trade Balance showed less deficit at -63.9B from the previous value of -66.3B which was expected to be at -65.0B. Besides, the Prelim Wholesale Inventories report was published at 0.6% from the previous value of 0.4% which was expected to be at 0.3%. The Natural Gas Storage was published with a decreased figure at 17B which was expected to be unchanged at 28B. To sum up, although the United Stated delivered mixed economic reports today, the greenback is still gaining over the aussie today which indicates the serious weakness of AUD at the current market scenario which is expected to continue much further in the coming days. The bearish pressure is expected to be medium term before the price launces itself up again with higher target towards 0.88 area.
Now let us look at the technical view, the price has already rejected the bulls with a greater volume today which does signal further bearish pressure in this pair. The pair has already been quite impulsively bullish after the break above 0.7750 and there were a few retracements along the way, so retracement towards 0.7750 to 0.7830 support area is expected before price continues its bullish run towards 0.8800 resistance area. As the price remains above the support area of 0.7750-0.7830 the bullish bias is expected to continue further.
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