AUD/USD Forecast: Is Technically Bullish, Next Directional Move Depending On Employment Data

AUD/USD Current Price: 0.6428

• Gold surged to a fresh multi-year high above $1,720.00 a troy ounce.
• Australia expected to have lost 40,000 jobs in March amid the coronavirus crisis.
• AUD/USD is technically bullish, next directional move depending on employment data.

The Aussie has extended its advance against its American rival, with the pair reaching 0.6442, its highest in five weeks. The pair got boosted at the beginning of the day by better-than-expected Chinese Trade Balance figures, later underpinned by the positive tone of equities. Broad dollar’s weakness and soaring gold prices, with the commodity at fresh multi-year highs above $1,720.00 a troy ounce added to the bullish case.

This Wednesday, Australia will release March employment data. The country is expected to have lost 40K jobs, on the back of the pandemic that is hitting the world. The unemployment rate is seen up to 5.5% from 5.1%. The impact of such a negative number will be limited, as speculative interest is aware of empowerment distortions as a result of the coronavirus crisis. Nevertheless and given that the pair has been rising for seven consecutive days, a worse-than-expected number could trigger some profit-taking.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair hovers around 0.6430, maintaining its bullish stance. The 4-hour chart shows that the Momentum indicator holds above its mid-line, although with little upward strength, as the advance is persistent but slow. The RSI, on the other hand, heads north despite being in overbought territory. A bullish 20 SMA, advancing beyond the larger ones, provides intraday support.

Support levels: 0.6390 0.6365 0.6300  

Resistance levels: 0.6440 0.6475 0.6500

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