AUDUSD

AUD/USD Must Stay Above 0.7400 to Preserve Upside Bias

The AUD/USD fell 0.77% on Thursday after mixed Australian employment data and underwhelming GDP figures from China weighed on sentiment.

China’s GDP q/y fell from 18.3% to 7.9% (versus consensus of 8.0%), indicating a slowdown of the Chinese economy’s recovery from the pandemic. China is Australia’s biggest market, and the downbeat GDP data did enough to suppress bullish sentiment on the pair.

Earlier, Australian employment data showed that the economy only added 29.1K jobs, a far cry from the 115.2K jobs added a month earlier. This number dampened sentiment around the employment figures, despite a reduction in the unemployment rate from 8.8% to 8.3%. Even at that, the fall in the unemployment rate did not meet market expectations of 7.8%.

Technical Outlook for AUD/USD

The daily chart of the AUD/USD shows the pair in the falling wedge pattern. A price bounce from the 0.74077 support, which intersects the wedge’s lower border, allows the price to aim for the 0.74640 resistance. A breakout from the wedge opens the pathway towards 0.75141, along with a measured move that targets completion at 0.75630. 

On the flip side, a breakdown of the 0.74077 support opens the door towards the 0.73724 support. 0.73382 also finds itself in the picture as a potential additional target.

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AUD/USD Daily Chart

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