Chart of the Day: AUDUSD
The AUDUSD got a nice lift in yesterday’s trading session, as the upbeat Chinese economic data helped the pair gain traction. Better-than-expected June industrial production, fixed asset investment and retail sales, and an in-line Q2 Chinese gross domestic product (at 6.2%) supported the pair, helping it reach a third consecutive day higher. That said, we saw price closing through critical resistance at 0.7034 level and crossing over a 100-day SMA. This seems like a significant development for the AUD, as finally we’re seeing better demand from the buyers to push the price higher.
While the AUDUSD is finally looking constructive and testing the top of its range, on the AUD side of the equation, all eyes turn to Thursday’s Aussie unemployment figures (11:30 AEST). The consensus expects the unemployment rate to remain unchanged at 5.2%, with 9,000 jobs created. Good numbers here will promote short covering, and should go some way to promote a move into the 0.7205 mark and the April highs — which would be a medium-term target. With the Reserve Bank of Australia putting huge impetus on the labour market, and should we see a good number in both the net change and unemployment rate, the pair would most likely find buyers easy to come by at a time when there’s growing bullish momentum in the AUD.
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