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The AUDUSD is Recovering Positions after Falling the Day Before

1/6/2023 11:02 AM

The Australian dollar shows weak growth against the US dollar during the Asian session, recovering from a noticeable decline the day before, which did not allow the instrument to consolidate on new local highs from December 13. The AUD/USD pair is testing 0.6770 for a breakout, finding no support among macroeconomic publications at the end of the week.

The instrument was slightly supported only by the data on business activity in Australia and China released the day before. The Services PMI from Commonwealth Bank in December fell again and amounted to 47.3 points instead of 47.6 points a month earlier, with a pessimistic forecast of analysts at 46.9 points. Thus, the value is corrected down for the sixth month in a row, so it is obvious that its annual dynamics will be negative. The Chinese Caixin PMI for the same period strengthened from 46.7 points to 48.0 points, exceeding the expected 47.5 points.

The development of a technical correction for the AUD/USD pair at the end of the week is also limited by the expectations of today's publication of the final report on the US labor market for December. Analysts are quite optimistic, given the fact that the report from Automatic Data Processing (ADP), released the day before, turned out to be better than their forecasts. Employment in the private sector in December increased by 235.0 thousand after an increase of 127.0 thousand in November, while analysts expected an increase in the indicator by only 150.0 thousand.

Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is slightly narrowing, being spacious enough for the current activity level in the market. MACD is declining keeping a weak sell signal (located below the signal line). Stochastic interrupted its rather active decline and reversed into a horizontal plane, indicating an approximate balance of power in the ultra-short term.

Resistance levels: 0.6800, 0.6850, 0.6900, 0.6950. | Support levels: 0.6750, 0.6700, 0.6628, 0.6583.

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