AUD/USD Daily Forecast – Weaker Commodity Markets Put Pressure On Australian Dollar
AUD/USD Video 25.03.21.
U.S. Dollar Attempts To Gain More Ground Against Australian Dollar
AUD/USD continues to test the support at 0.7600 while the U.S. dollar is moving higher against a broad basket of currencies.
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The U.S. Dollar Index is currently trying to get to the test of the resistance level at 92.70. If this attempt is successful, it will head towards the next resistance at the 93 level which will be bearish for AUD/USD.
Yesterday, U.S. reported that Manufacturing PMI increased from 58.6 in February to 59 in March while Services PMI grew from 59.8 to 60. The reports indicated that the economy continued to rebound.
Today, foreign exchange market traders will have a chance to take a look at the latest job market data from the U.S. Analysts expect that Initial Jobless Claims report will indicate that 730,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 4.12 million to 4.04 million.
Traders will also keep an eye on commodity markets whcih remain under some pressure amid worries about the third wave of the virus in Europe. In addition, the virus situation is getting worse in Brazil and India. The situation in India is especially concerning since India is an important consumer of various commodities. If commodity markets continue to move lower, Australian dollar will find itself under more pressure.
Technical Analysis
AUD/USD managed to settle below the support at 0.7635 and is trying to settle below the next support level at 0.7600. If this attempt is successful, AUD/USD will move towards the next support at 0.7575.
A successful test of the support at 0.7575 will open the way to the test of the next support level at 0.7535. If AUD/USD gets below the support at 0.7535, it will head towards the support at 0.7490.
On the upside, AUD/USD needs to get back above 0.7600 to have a chance to develop upside momentum in the near term. The next resistance level is located at 0.7635. A move above this level will push AUD/USD towards the resistance at 0.7665. In case AUD/USD settles above 0.7665, it will head towards the next resistance at 0.7700.
For a look at all of today’s economic events, check out our economic calendar.