AUD/USD broke below its short-term range and is now retesting the former support.
Will the area of interest hold when U.S. leading jobs indicators are released?
Before moving on, ICYMI, yesterday’s watchlist checked out USD/JPY’s retest of a broken uptrend line. Be sure to check out if it’s still a good play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Chicago PMI for May slumped from 48.6 to 40.4 vs. 47.1 forecast to indicate a sharper industry contraction than estimated
FOMC members Jefferson and Harker suggested that pausing from interest rate hikes could allow the Fed to better assess impact of recent monetary policy adjustments
U.S. JOLTS job openings for April came in at 10.10 million versus 9.41 million estimate and March’s upgraded 9.75 million figure
U.S. Fed Beige Book revealed that some districts reported cooling labor market conditions, as employment still increased but at a slower pace in late April to early May
Australia’s private capital expenditure rose 2.4% quarter-on-quarter in Q1 vs. projected 1.1% gain, following earlier period’s upgraded 3.0% reading
Chinese Caixin manufacturing PMI for May jumped from 49.5 to 50.9 to signal shift to industry growth vs. expected 49.5 figure
German retail sales rose 0.8% month-over-month in April vs. estimated 1.0% increase, previous reading revised from -2.4% to -2.2%
Price Action News
Dollar pairs tossed and turned in the previous trading sessions, as the U.S. currency got a boost from upbeat JOLTS job openings data only to return the gains when FOMC officials suggested “skipping” a hike in June.
Rangebound price action resumed in the early Asian session, except against the Australian dollar which rallied on account of surprisingly strong Chinese Caixin PMI data.
Eurozone CPI flash estimates at 9:00 am GMT
ECB head Lagarde’s testimony at 9:30 am GMT
Challenger job cuts at 11:30 am GMT
U.S. ADP non-farm employment change at 12:15 pm GMT
U.S. initial jobless claims at 12:30 pm GMT
U.S. ISM manufacturing PMI at 2:00 pm GMT
FOMC member Harker’s speech at 5:00 pm GMT
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Check out this bearish break on AUD/USD’s range!
The pair fell as low as S1 (.6460) before pulling up for a retest of the broken support area, which is right around today’s pivot point (.6500) and a major psychological mark.
Price is still hovering around this area, as traders might be holding out for the release of another batch of U.S. leading jobs indicators ahead of Friday’s NFP report.
This includes the Challenger job cuts, ADP non-farm employment change figure and the jobs component of the ISM manufacturing PMI.
If dollar bulls decide to charge again, AUD/USD could resume its slide back down to S1 or even all the way down to the next floor at S2 (.6420).
A dollar selloff, on the other hand, could take the pair back above the pivot point and onto a test of R1 (.6540) near the range resistance.