feedback
The FxPro Analyst Team

Aussie and Kiwi Near Major Support, US Data and Yellen will be the Key

AUD/USD has turned bearish, and has seen a substantial fall since the US election night, due to the sharp reversal of the dollar.

Yesterday AUD/USD broke the psychologically important support level at 0.7500, due to a further rally of the dollar.

This morning we have seen the release of Australian Unemployment Rate and Employment Change for October. The Unemployment Rate was 5.6%, in line with expectations. The Employment Change has seen a 9.8K rise, which was lower than expectations of 20.0K, yet has outperformed the previous figure of a 29K fall. AUD/USD is currently holding above the support level at 0.7450.

The current price is nearing the long term significant support level at 0.7400, which is providing a strong support, the bearish momentum is likely to wane at this level.

The daily Stochastic Oscillator is below 20, indicating oversold and a likely rebound.

The resistance level is at 0.7500, followed by 0.7530 and 0.7550.
The support line is at 0.7450, followed by 0.7400.

We will see the release of a set of the US economic data for October, to be released at 13:30 GMT today. It includes Building Permits, Housing Starts, Initial Jobless Claims, CPI and Core CPI, and Philadelphia Fed Manufacturing Survey (Nov). They will cause volatility for the dollar and AUD/USD.

More importantly, the Fed Chair Yellen will testify before the Congress this afternoon at 15:00 GMT. We can expect that it will cause a greater volatility for the dollar. With wordings that in favour of a rate hike, it will weigh on AUD/USD again and test the support levels.

audusd-d1

NZD/USD has turned bearish, and has seen a substantial fall since the US election night, due to the sharp reversal of the dollar.

The current price is holding above the near term major support line at 0.7060.

The long term significant support level is at 0.7000, which is providing a strong support, the bearish momentum is likely to wane at this level.

The daily Stochastic Oscillator is below 20, indicating oversold and a likely rebound.

The resistance level is at 0.7110, followed by 0.7150 and 0.7180.
The support line is at 0.7060, followed by 0.7030 and 0.7000.

Keep an eye on the New Zealand Q3 Retail and Core Retail Sales (QoQ), to be released today, it will likely influence the trend of NZD/USD.

nzdusd-d1-

5/5(1)