Current trend

Amid poor macroeconomic statistics from Australia, the AUD/USD pair is correcting down, trading at 0.6378.

In June, household spending corrected by –0.5% MoM and slowed down to 1.4% YoY. The largest growth in spending remains in the categories of goods and services (10.8%), healthcare (7.8%), as well as furniture and household appliances (6.6%). Thus, the global trend of recovery of the indicator is interrupted, which may put additional pressure on the economy. On the other hand, the Q2 producer price index increased by 1.0% after 0.9% earlier, meeting forecasts and not having a significant impact on the quotes.

The American dollar is trading at 102.40 in USDX. The July unemployment rate rose from 4.1% to 4.3%, nonfarm payrolls decreased from 179.0K to 114.0K, and the private nonfarm payrolls from 136.0K to 97.0K, reaching a low of January 2021.

Support and resistance

On the daily chart, the trading instrument is correcting, approaching the support line of the ascending channel with dynamic boundaries of 0.6810–0.6510.

Technical indicators are holding the sell signal: fast EMA on the Alligator indicator are moving away from the signal line, expanding the range of fluctuations, and the AO histogram is decreasing in the sell zone.

Resistance levels: 0.6450, 0.6540.

Support levels: 0.6360, 0.6270.

Trading tips

Short positions may be opened after the price declines and consolidates below 0.6360, with the target at 0.6270. Stop loss — 0.6400. Implementation period: 7 days or more.

Long positions may be opened after the price grows and consolidates above 0.6450, with the target at 0.6540. Stop loss — 0.6400.