The Australian dollar rallied during the Asian session to see its 11-day session retreat in its 13th session since January 3 against the US dollar following developments and economic data that followed on the Australian economy and amid a lack of economic data Thursday by the US economy due to holiday Independence Day in the United States of America.
At 02:22 GMT, the AUDUSD rose 0.20% to 0.7043, compared to the opening levels of 0.7029, after hitting its highest since May 7 at 0.7048, while its lowest Trading session at 0.7028.
On the Australian economy, the Retail Sales Index rose 0.1% from 0.1% in April, below expectations of a 0.2% rise, coming hours after Tuesday's release of the Reserve Bank of Australia's interest rate statement. Reported a 25 basis point cut for the second consecutive meeting to 1.00% from 1.25%.
On the other hand, markets are looking ahead to Friday's release of US labor market data last month, which could reflect a stable unemployment rate at 49-year low of 3.6%, unchanged from May, amid expectations that the job-sector index Excluding agriculture, job creation accelerated to 164,000 versus 75,000 jobs, and the median hourly earnings index accelerated to 0.3% from 0.2%.
This comes hours after the reading of the index of change in private sector jobs, which are preliminary data for the US labor market, the pace of job creation accelerated to 102 thousand jobs compared to 41 thousand jobs in May, below expectations for 140 thousand jobs added, The US Labor Market Report is an important report that weighs heavily on the decisions and directions of monetary policy makers at the Fed.
Technical Analysis
The AUDUSD is testing the 0.7044 pivotal resistance and is still below it, awaiting the resumption of the bearish trend targeting 0.6900 initially.
Keep in mind that a break of 0.7044 and a daily close above it will stop the suggested negative scenario and lead the price to further short-term bullish correction, heading towards the 0.7252 zones as the next major station.
The trading range for today is expected among the support at 0.6970 and the resistance at 0.7060.
The general trend for today is bearish.