Current trend

Against the growth of the American dollar, the AUD/USD pair is correcting around 0.6698, preparing to end the week with an update of the lows of December 18.

The negative dynamics are developing against poor macroeconomic statistics from Australia: manufacturing PMI decreased from 47.7 points to 47.6 points, worse than predicted 47.8 points, and service PMI increased from 46.0 points to 47.1 points, not justifying the calculations of 47.6 points. Indicators are at the autumn’s end levels, which, against significantly increased similar indicators in other developed countries, reflects the weakness of the national economy.

The American dollar reached 102.200 in USDX after the release of the December labor market report, according to which nonfarm payrolls from Automatic Data Processing (ADP) increased by 164.0K from 101.0K previously. From today’s data from the US Federal Bureau of Labor Statistics, analysts expect a correction of the same indicator by 170.0K, below 199.0K last month, and in the private non-agricultural sector by 130.0K compared to 150.0K in November.

Support and resistance

On the daily chart, the trading instrument is moving within a local ascending channel with boundaries of 0.6860–0.6700, preparing to test the support line.

Technical indicators are weakening the global buy signal against a local correction: fast EMAs on the Alligator indicator are above the signal line, narrowing the range of fluctuations, and the AO histogram forms downward bars in the buy zone.

Resistance levels: 0.6740, 0.6850.

Support levels: 0.6670, 0.6560.

Trading tips

Short positions may be opened after the price declines and consolidates below 0.6670 with the target at 0.6560. Stop loss – 0.6730. Implementation period: 7 days or more.

Long positions may be opened after the price rises and consolidates above 0.6740 with the target at 0.6850. Stop loss – 0.6700.