AUD/USD Daily Forecast – Australian Dollar Rebounds

AUD/USD Video 03.02.21.

Australian Dollar Moves Higher Against U.S. Dollar

AUD/USD is currently trying to settle above the 50 EMA at 0.7620 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has managed to get below the nearest support level at 90.10 and is trying to gain additional downside momentum. If this attempt is successful, the U.S. Dollar Index will move towards the next support level at the 50 EMA at 90.80 which will provide additional support to AUD/USD.

Australia has recently reported that Services PMI increased from 55.6 in December to 57.0 in January compared to analyst forecast of 55.8. Meanwhile, Building Permits grew by 10.9% in December compared to analyst forecast which called for growth of 2.3%.

Today, foreign exchange market traders will also have a chance to evaluate the latest economic data from the U.S. ADP Employment Change report is projected to show that private businesses hired 49,000 workers in January. Services PMI is expected to grow from 55.3 in December to 58 in January.

The relative strength of the economic recovery in the U.S. has recently provided material support to the American currency, but Australia’s economy is also doing well thanks to the country’s success in its battle against coronavirus which may provide support to the Australian dollar.

Technical Analysis

AUD/USD is currently testing the 50 EMA level at 0.7620. If AUD/USD manages to settle above the 50 EMA, it will head towards the next resistance at 0.7635.

A move above the resistance at 0.7635 will open the way to the test of the next resistance level at 0.7660. In case AUD/USD gets above this level, it will head towards the 20 EMA which is located near 0.7675.

On the support side, AUD/USD needs to settle below the 50 EMA in order to have a chance to develop downside momentum in the near term. The next support level is located at 0.7600.

If AUD/USD declines below this level, it will head towards the support at 0.7575. A move below this level will push AUD/USD towards the support at 0.7540.

For a look at all of today’s economic events, check out our economic calendar.