Australian Dollar stages a rebound - Can the bulls sustain the momentum?
The Australian Dollar corrected from its bearish trend on Friday as the U.S. Dollar Index (U.S. DXY) was flat around its highs around five months at 106.10.
The AUD/USD witnessed mixed price action following disappointing Australian employment data released last Thursday.
The data revealed job losses in March after the Australian jobs report showed a decline of 6.6K, which fell short of estimates.
Additionally, the unemployment rate rose from 3.7% to 3.8%.
This week's economic calendar includes Manufacturing and Services PMI data from Europe on Tuesday and GDP numbers from the U.S. on Thursday.
Then, on Friday, the U.S. Federal Reserve's preferred inflation gauge—the PCE (Personal Consumption Expenditures) index—will be unveiled.
This week, attention is also drawn to Wednesday's Australian Consumer Price Index (CPI).
Based on technical indicators, the Relative Strength Index (RSI) has rebounded but remains negative, while the Moving Average Convergence Divergence (MACD) signals a weak or negative trend.
The Average Directional Index (ADX) supports a bearish trend.
With bullish support holding firm around 0.6270-75, a potential bullish correction may be imminent.
Confirmation of this correction could occur with a break above 0.6475-85, signalling a trajectory toward the 0.6535-50 range (60-day SMA).
Reevaluation is recommended upon reaching that point.
Daily Chart Spot Australian Dollar Vs. U.S. Dollar
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