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The AUDUSD is Testing 0.680 for a Breakout

12/1/2022 10:58 AM

The Australian dollar shows a weak growth, updating local highs from September 13 and trying to consolidate above 0.6800. The AUD/USD pair was actively adding in value the day before in response to the speech of the Chair of the US Federal Reserve, Jerome Powell, who promised a slowdown in monetary policy tightening in the near future. In addition, investors were put on guard by the weak results of the Automatic Data Processing (ADP) report on employment in the private sector, as the final report on the US labor market for November is expected to be released on Friday.

Macroeconomic statistics from Australia did not have a significant impact on the market dynamics; however, investors drew attention to a sharp drop in consumer inflation in October from 7.3% to 6.9%, while analysts expected a further increase to 7.4%. On the positive side, one can also note a moderate increase in the Construction Work Done in the third quarter by 2.2% after a decrease of 2.0% in the previous period. Thursday morning statistics do not yet contribute to the active development of "bullish" sentiment for the instrument. Thus, the manufacturing PMI of Australia from S&P Global in November showed a moderate decline from 51.5 points to 51.3 points, which was worse than the neutral forecasts of analysts.

Bollinger Bands in D1 chart show moderate growth. The price range is expanding, but fails to keep up with a surge of "bullish" sentiment. MACD indicator is growing having formed a stable buy signal (located above the signal line). Stochastic is showing similar dynamics, but the line of the indicator is gradually approaching its highs, indicating the risks of overbought Australian dollar in the ultra-short term.

Resistance levels: 0.6853, 0.6900, 0.6950, 0.7000. | Support levels: 0.6800, 0.6750, 0.6700, 0.6650.

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