AUDUSD Looks to Retest 0.7400 Resistance With U.S. Data Ahead
The AUDUSD pair was 0.50% higher on the day and looking to test the recent highs from September 1st, but the day will be defined by the U.S. data releases today.
Retail sales for the United States are due out first with a gain of 1% expected after a similar advance in July. Further gains in the number could spur buying in the dollar. Later in the session we will get the latest interest rate decision from the Federal Reserve. The Fed are unlikely to take any action with interest rates currently near zero, but the economic projections that are also released could help traders to adjust their outlook on the path for the U.S. economy.
Tomorrow sees jobs numbers released for the Australian economy and market expectations are for a loss of 50k jobs. This drop is expected to drive the unemployment rate higher to 7.7.% for the Aussie economy. The employment numbers were closely watched by the Reserve Bank governor earlier in the year and could see traders betting on further stimulus if the numbers disappoint, while a reduction in unemployment could push the Aussie currency through the resistance levels.
The AUDUSD held interest rates steady and 0.25% and this gives the currency an advantage over most other global currencies, which are currently near zero, with some economies considering a need for negative rates.
AUDUSD Technical Outlook
The AUDUSD pair was making another move for the recent high at 0.7400. The price action will now be guided by the U.S. data. A close above the high could open up further gains, while a break below 0.7200 could see the market moving lower once more in a correction of the steep gains from March. The Investing Cube team can assist all levels of traders with the Trading Course and one-to-one coaching.