• The Fed left interest rates unchanged as
  expected at the last meeting and dropped the tightening bias in the statement.
• The US PCE came
  in line with expectations.
• The US ADP and
  the US Job Openings missed
  expectations, followed by weaker than expected US Jobless Claims.
• The latest US ISM
  Manufacturing PMI missed expectations by a big margin
  remaining in contraction with the US ISM Services
  PMI
  following suit but holding on in expansion.
• The US Consumer
  Confidence missed expectations across the board.
• The market expects the first rate cut in June.

AUD

• The
  RBA left interest rates unchanged as expected with the central bank
  maintaining the usual tightening bias and data dependent language.
• The
  recent Monthly CPI report missed expectations across
  the board which was a welcome development for the RBA.
• The
  latest labour market report missed expectations by a big
  margin.
• The
  wage price index surprised to the upside as wage
  growth in Australia remains strong.
• The
  latest Australian PMIs showed the Manufacturing PMI falling
  back into contraction while the Services PMI jumped back into expansion.
• The
  market expects the first rate cut in August.

AUDUSD Technical Analysis –
Daily Timeframe

On the daily chart, we can see that AUDUSD eventually
bounced around the key 0.65 support zone and
extended the rally into the swing high at 0.6623. A successful break above this
level should open the door for a rally into the 0.69 resistance next. We can
also notice that the price is a bit overstretched as depicted by the distance
from the blue 8 moving average. In such
instances, we can generally see a pullback into the moving average or some
consolidation before the next move.

AUDUSD Technical Analysis –
4 hour Timeframe

On the 4 hour chart, we can see that in case we get
a pullback, the buyers will have the first support around the 38.2% Fibonacci retracement level
where they will also find the red 21 moving average for confluence. The
sellers, on the other hand, will want to see the price breaking below the
Fibonacci level to increase the bearish bets into new lows.

AUDUSD Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see more
closely the recent price action with the pair now trading inside a rising
channel with the red 21 moving average acting as dynamic support. A break to
the downside should trigger a selloff into the Fibonacci level with the sellers
piling in with more conviction.

Upcoming Events

Today we conclude the week with the US NFP report.

This article was written by FL Contributors at www.forexlive.com.