Despite the past upward trend, the EUR/USD currency pair has experienced a poor trading day, with a price below 0.7000.

Consumer inflation predictions are due on May 10, 2022. The Melbourne Institute also displays customers’ forecasts for future growth. The more difficult the situation, the more likely an RBA rate hike is.

Consumer inflation estimates maintained 4.8 percent last month, compared to 5.2 percent the month before data, as economists expected.

Whereas, The US Department of Labor’s forthcoming announcement of initial jobless claims has economists estimating that it would post a figure of 194,000 in May, down from 200,000 the month before.

Initial jobless claims are a measure of the number of people filing first-time claims for state unemployment insurance. In other words, it acts as a gauge of the labor market’s health. A higher-than-expected number indicates market weakness, which has an impact on the US economy’s health and direction.

From a technical standpoint, sustained loss below the 0.7000 level puts the pair at risk of challenging the YTD low, which is at 0.6965. The depreciating trend might be prolonged to intermediate support between 0.6840-0.6835, in route to the 0.6800 round figure.

The 0.7040 sector, on the other hand, appears to be acting as an immediate strong barrier ahead of the 0.7090-0.7100 range. Longer-term strength could generate a short-covering recovery, allowing bulls to reclaim the 0.7200 level.

Conclusion

The AUD/USD pair has been sliding in recent days, hitting a new multi-week low of 0.7263 on Friday before closing the trading week a few ticks higher.