The Australian dollar rose sharply higher against the US dollar this week, following much better than expected domestic economic data and improved confidence in the global economy. The following AUDUSD technical analysis explains what next to expect.
2 November, OctaFX – The Australian dollar halted its gains against the USD in the Asian market. This happened after Australia released the retail sales and PPI data.
The retail sales for September rose by 0.2%, which was lower than the expected gain of 0.4%. It was also lower than the previously-released data of 1.0%. Retail sales data is closely watched because it is an important measure of consumer spending.
The PPI data for the second quarter rose by 2.1%, which was higher than the 2.0% that traders had expected. On a QoQ basis, they rose by 0.8%, which was higher than the consensus forecast of 0.2%.
Today, the AUDUSD pair’s movement will depend mostly on the US dollar. This is because traders will receive the official jobs numbers from the Labor Department.
AUDUSD Technical Analysis
The AUDUSD pair halted the sharp upward movements started yesterday. It is now trading at the 0.7200 level, which is slightly lower than yesterday’s high of 0.7215.
With no data expected again from Australia, the US jobs numbers will be the main movers today. The momentum indicator shows that the upward trend could continue.
This is also shown by the double Exponential Moving Average indicators. If it continues the upward trend, the pair will likely test the 0.7250 level.
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