The sentiment and commodity linked Australian dollar remains depressed against the U.S. dollar headed into Wednesday. The benchmark AUD/USD currency exchange rate is trading around 0.7315 after falling below the fifty (50) day simple moving average and is now challenging the twenty day (20) simple moving average.
Overnight into Thursday, The Down Under will publish monthly labor numbers. The country is releasing their unemployment change and unemployment rate which should prove volatile for the Australian dollar.
The United States is publishing their monthly import and export indices. The New York Federal Reserve is releasing their monthly manufacturing index and the United States will release weekly crude oil inventory data as well as monthly industrial production data.
Consumer prices are in focus on Wednesday. The United Kingdom is releasing their monthly consumer price index (CPI). The UK will also release their monthly producer price index (PPI). The Bank of England is closely watching inflation data as they consider the future of their monetary policy settings.
The euro area is publishing monthly wages as well as industrial production data for the month. France and Italy will publish their monthly consumer price index, as well.
Daily Australian dollar Technical Analysis (AUD/USD)
Looking at the above daily AUD/USD MT 4 price action chart, the technical indicators look negative. The MACD histogram is looking downbeat which is keeping Australian dollar hopeful for further possible losses.
On the downside, the 20 day simple moving average lines up at 0.7315 and is currently being challenged. The next layer of technical support lines up at 0.73 with the 23.6 percent Fibonacci level lining up at 0.7225. The next downside barrier lines up at 0.7105.
On the upside, the 50 day simple moving average lines up at 0.7355 with the 61.8 percent Fibonacci level coming into focus around 0.7420. The next layer of technical resistance lines up at 0.7478. This is also the monthly high price point.