23.11.201705:07 Forex Analysis & Reviews: Fundamental Analysis of AUD/USD for November 23, 2017

AUD/USD has been quite bearish after breaking below 0.7750 price level which had no deeper pullback along the way but currently showing some bearish price action bouncing off the 0.7550 support area. USD had been quite mixed with the economic reports recently which lead to the bullish intervention in the non-volatile bearish trend, but overall USD is still can be taken as a dominant currency in the pair. Recently AUD had been quite positive with the economic reports including an increase in the value of Construction Work Done report to 15.7% from the previous value of 9.8% which was expected to decrease to -2.1%. The significant increase in the value of the economic report did provide the currency with good gains against USD recently which might lead to deeper fullback before the proceeds lower in the coming days. Today USD do not have any economic reports or events to impact the market due to holiday of Thanksgiving day but tomorrow Flash Manufacturing PMI report is going to be published which is expected to increase to 55.1 from the previous figure of 54.6 and Flash Services PMI report is expected to have slight increase to 55.5 from the previous figure of 55.3. As of the current scenario, AUD is expected to gain some momentum against USD in the short term which may lead to a deeper pullback, but the bias is still quite bearish and any positive economic outcome on the USD side is expected to recover the gains and proceed further downward in the coming days.

Now let us look at the technical view, the price is currently residing above the support area of 0.7500-50 from where the price is expected to show some bullish pressure towards the dynamic level of 20 EMA. The bias is still quite bearish and after certain pullbacks, the price is expected to push lower with the target towards 0.7500 and later towards 0.7160 support level.