Intra-day bias on the AUD/USD remains on the upside after the pair found support at 0.89270. Supply for the pair in the early hours of yesterday’s trading session was fueled by a disappointing employment data which caused weakness in the Australian currency. However the weakness of the single currency was short-lived after a Reserve Bank of Australia official Governor Debelle, who believed the Australian economy is over-all under recovery, as hike in Interest rates around Q4 seems to be inevitable.
Regarding the U.S economy, the greenback traded lower against most major currencies on Thursday after disappointing U.S. retail sales data reminded investors that the Federal Reserve will take its time dismantling dollar-weakening stimulus programs, while rate hikes remain far beyond the horizon. This is also caused weakness in the U.S dollar which saw more demand for other currencies.
Technically, the pair is set to re-test 0.90655 resistance, the highest it made for the week before the sudden decline caused by the worsening unemployment rate and employment change. A break of this resistance would see further rise to 0.91000 psychological zone as RSI, Stochastic, MACD and 55EMA on the daily charts are all signaling further demand could be seen.
However, a break of support 0.89270 to the downside might dampen the potential reversal of the pair.