Aud/usd – More Sideway Movements Can Be Expected for the Pair
- Take Profit: 0.6600
- Stop Loss : 0.6750
- Timeline: 1-2 days
- Buy Stop : 0.6700
- Take Profit: 0.6800
- Stop Loss : 0.6600
The AUD/USD pair is still fluctuating within a range and does not yet appear to be in a strong trend. Prior to the release of the US CPI data on Wednesday, the pair’s price was mostly unaffected. After the announcement of the NFP data last Friday, the pair was only making sideways movements. Looking at the BLS report, we can see that the unemployment rate decreased by 3.6% as the labour market improved due to the influx of more than 206k new positions.
We can observe from the charts that the pair is situated between the upper and middle Bollinger Bands. The pair price is holding within the important support level of 0.6600 and important resistance level of 0.6704, which has caused the RSI to go slightly above the neutral point. presently, the price of the pair is relatively choppy, so the general view is neutral with a downside bias. However, the bearish view would become invalid if the price crosses the key resistance level of 0.6705.
The US inflation statistics, which many economists anticipate will show a decline in the inflation rate for the month of June, will be the next important data release to pay attention to. Additionally, it is anticipated that core inflation, which was 5.3% in May, will drop to 5% in June. The Fed has indicated that they will proceed with additional rate increases, since the inflation is still not anywhere near the target rate of 2%. The US Dollar index likewise experienced a week-long dip of 1.83%, falling to $101.66. Prior to the announcement of the inflation figures, US bond yields have also retreated.