Today, the AUD/USD pair is keeping its positions though the US dollar is strengthening against other . On Thursday, the Australian dollar gained significant support from strong labour market statistics, released in Australia. Thus, Rate declined from 6.2% to 5.9% in October, while Employment Change indicated a growth by 58.6K that is about four times above the forecast.
Australia's economy is export-oriented, thus, it will benefit from a weaker national currency. At the same time, China, as Australia's biggest trading partner, is showing clear signs of economic slowdown, lowering and weakening domestic demand.
Today, attention needs to be paid to Retail Sales for October and Reuters/Michigan Consumer Sentiment Index for November, due in the US. Favorable statistics will strengthen the US dollar .
Support and resistance
On Thursday, the price strengthened to the of 0.7150 (EMA50 on the , the upper border of a and EMA200 on the 4-hour chart).
On the 4-hour chart, OsMA and indicators are turning to short positions.
If the price fails to overcome the level of 0.7150, a downward trend may resume towards 0.7030, 0.7000 (the lower border of the ), 0.6950 and 06910 (September and year lows).
On the , OsMA and recommend long positions, indicating that the price may continue correcting up and breakout the level of 0.7150.
Support levels: 0.7100, 0.7030, 0.6950, 0.6910.
Resistance levels: 0.7150, 0.7190, 0.7325, 0.7390, 0.7500.
Short positions can be opened from the level of 0.7110 with targets at 0.7030, 0.6960, 0.6910 and stop-loss at 0.7150.
Long positions can be opened from the level of 0.7170 with targets at 0.7210, 0.7300, 0.7380 and stop-loss at 0.7140.