AUD/USD Downward Channel In-Play - Eyes on U.S. Retail Sales!
By Eaglefx On May 15, 2020 in Daily Market Analysis
The AUD/USD pair was closed at 0.64611 after placing a high of 0.64687 and a low of 0.64032. Overall the movement of pair remained bullish throughout the day. The AUD/USD pair fell in the beginning sessions but started to post gains after falling for the previous three days and ended its day with a bullish candle.
At 6:30 GMT, the Employment Change from Australia showed a decline of 594.3K against the expected reduction of 575.0K. The increased number of jobless people during April from Australia weighed on Aussie on Thursday. The Unemployment Rate from Australia came in as 6.2%against the expectations of 8.3% and supported Aussie.
Aussie fell in early sessions on the back of an increased number of jobless people during previous months. But in the late session, it started to gain traction on the back of poor than expected U.S. jobless claim data.
Last week 2.9M Americans filed for jobless benefit against the expected 2.5M people, and it weighed on the U.S. dollar. The weaker us dollar helped the AUD/USD to move in an upward direction.
Furthermore, the escalating tensions between the U.S. and China also drove this pair on Thursday after Trump announced that he was prepared to cut off its ties with China. The domestic tensions of Aussie also affected the pair's movement. Relations of Australia itself with China are under danger zone after the Australian PM has shown his support to the investigation of China's role in coronavirus origin. China seemed to be offended by this step from its largest trading partner and then announced an 80% tariff on Australian meat imports.
Support Resistance
0.6426 0.6496
0.6380 0.6520
0.6356 0.6566
Pivot Point: 0.6450
Technically speaking, the AUD/USD pair is trading below the horizontal resistance level of 0.6467 level. At the same level, the 50 periods Exponential moving average is also extending resistance, and we may see a continuation of a selling trend in the Aussie dollar. The pair may find immediate support around 0.6412 level, while the continuation of a selling bias may lead the Aussie towards 0.6375. Let's wait for the U.S. retail sales data before taking further trades in the AUD/USD pair. Good luck!