The Australian dollar fluctuated in a narrowly bullish range during the Asian session to see its eighth session rebound in 12 sessions from its lowest since May 17 when it tested its lowest since January 3 against the US dollar following economic developments and data Which followed on the Australian economy and on the eve of developments and economic data expected Friday by the US economy.
At 02:45 GMT, the AUDUSD rose 0.04% to 0.6980, the pair's highest level during the session, compared with the opening levels at 0.6977, while the pair reached a low of 0.6972.
We followed the Australian economy by reading the Australian Industrial Group's manufacturing index, which showed a contraction of 40.4 versus 2.6 in April, before we saw housing market data released with the Home Loan Index reading showing contraction Fell to 1.2% from 2.3% last March, in contrast to expectations of a 0.2% drop.
On the other hand, investors are looking for the US economy to reveal labor market data, which may show the stability of the unemployment rate at its lowest level in 49 years at 3.6%, unchanged from the previous reading for the month of April, amid expectations that reflect The median hourly income index accelerated the pace of growth to 0.3% versus 0.2% in April.
This is in line with the release of the Non-Farm Employment Change Index, which may indicate a slower pace of job creation to 180,000 added jobs versus 263,000 jobs in April and before we see the final reading of the Wholesale Inventories Index, 0.7%, unchanged from April's preliminary reading and 0.1% lower than in March.
Technical Analysis
AUDUSD fell against the USD in recent trading on the intraday basis, and is also exposing itself to the 50-day SMA at the intraday level, thus announcing the continuation of the short-term downside correction, amid negative signs of RSI.
Therefore, our expectations are for further bearish correction for the pair to trade at the intraday level, targeting the first support at 0.6962. If breaching this level, the negative pressure will increase to open further downside, targeting the support level at 0.6937.
The general trend for today is bearish.