Finally, by the news of the Average Hourly Earnings, Australian Dollar (AUD) took the step in the direction of the forward. With the steady decline since 24 December 2019, this has been the first step towards success, hence with the green candle label, it stands with the price of more than 0,6600. Whereas, with the higher low wave printed on the graph in the last upside move, the technical bias remains bearish.
The annual record of The Average Hourly Earning released by the U.S. Bureau of Labor Statistics dropped its 3.1% to 2.9% unexpectedly. As an important indicator of labor cost inflation and labor market tightness. When setting interest rates, the Federal Reserve Board pays close attention. For the USD, too, a high reading is positive, whereas a low reading is negative.
On the other hand, yesterday’s report at AUD’s trade balance also serves to drive prices up, as this month’s trade balance is 5800 M compared to last month’s 4502 M. Trade Balance gives an early indication of net success in exports. If a stable demand is seen in exchange for Australian exports, that would result in positive growth in the balance of trade and that should be positive for the AUD.
Currently, the price of the AUDUSD is at 0.6890. The following graph shows three levels of support at different intervals, which will provide the possible help to the price to push up, and these levels of support, on the other side, will also protect it from backup.
As of now, the price of the AUDUSD is loaded with many levels of resistance, which could make its route narrow for upward direction and may also stop its forward movement.
AUDUSD needs strong backup support to lift its price, whereas chances may so far be lower so trading at this stage can be risk-fearing.