AUDUSD was lower again today after the U.S. dollar shrugged off weak durable goods orders to find strength and the pair is now trading at 0.7020. Next week will be a big week for the dollar with consumer confidence, inflation numbers, and manufacturing PMIs; all coming before Friday’s Non Farm Payrolls number.
Today saw durable goods numbers for the U.S. economy come in lower than analyst expectations with a reading of 0.4% versus 1.5%. Traders have ignored the number as it still highlights a fourth-consecutive month of gains and there are bigger events ahead.
Next week sees finalized Q2 GDP for the U.S. economy but the key day will likely be Thursday where PCE prices could see where inflationary pressures are in light of the Fed’s 2% target. We will also get manufacturing PMIs on that day and although traders expect a high 56 reading like last month, a number close enough could spur USD strength ahead of Friday’s payrolls. Traders will be looking to see if the recent drop in the unemployment rates can continue.
Australia’s interest rate at 0.25% gives the currency an advantage over the U.S., however traders are expecting a potential cut for the Australian economy in the months ahead. If the U.S. can show further strength in the areas of inflation, manufacturing and employment, then the AUDUSD correction can continue.
AUDUSD Technical Outlook
AUDUSD has tumbled with the rebound in the U.S. dollar and is now looking at the 0.7000 level for a test. Below there would be 0.6800 but there are support levels on the way. If AUD can find a base then it could target the ma at 07200 but fortune favours the downside for now.
AUDUSD Daily Chart
