The Australian dollar fell during the Asian session to rebound to a second session of its highest since May 8 against the US dollar amid a lack of economic data by the Australian economy earlier this week and on the eve of developments and economic data expected on Monday by the US economy, the largest economy in the world.
At 0238 GMT, the AUDUSD fell 0.30% to 0.6980, compared to the opening levels at 0.7007, while the pair reached a low of 0.6979, while the highest at 0.7023, The pair started trading this week on a bullish price gap after closing last week at 0.7001.
The markets are currently looking to the US economy for a statistical reading of employment opportunities and job turnover, which may reflect a rise to 7.50 million versus 7.49 million in March, coming hours after the disclosure of labor market data at the end of last week, which showed stability Unemployment at its lowest level since 49 years at 3.6% was little changed from last April, consistent with expectations.
In the same context, we also followed last Friday's reading of the Non-Farm Employment Change Index showed a slowdown in job creation to 75,000 added jobs, compared to 224,000 jobs added in April, while the average income per hour showed stable growth at 0.2%, unchanged from April, in contrast to expectations of a 0.3% growth rate.
AUDUSD stalled at the 50 SMA and was unable to reach 0.7044, showing negative signs supporting the resumption of the main bearish trend and achieving only the upside so far. SMA 50 has formed a strong resistance against the price, while Stochastic is showing clear negative signals.
Therefore, we expect the pair to witness negative trading during the coming sessions. The targets start with breaking 0.6945 to confirm the rally towards 0.6860 as the next major station, noting that the continuation of the expected decline depends on stability below 0.7044 and 0.7075.
The trading range for today is expected among the support at 0.6920 and the resistance at 0.7000.
The general trend for today is bearish.