The AUD/USD plunged on Thursday after fresh U.S. economic data pointed to solid U.S. growth. However, losses were limited on concerns over Friday’s U.S. Non-Farm Payrolls report.
In economic news, the U.S. trade deficit fell in August, coming in at -42.4 billion, slightly better than the -42.7 billion forecast and last month’s -43.6 billion read. Exports of goods and services rose to the highest level in more than 2 ½ years.
Weekly unemployment claims came in at 260K, below the 266K estimate and the 272K previous read. Factory Orders beat expectations with a 1.2% read. It was also a big improvement over last month’s 3.3 percent read.
The main trend is down according to the daily swing chart. A trade through .7785 will signal a resumption of the downtrend. Today’s price action also made .7875 a new minor top. A trade through this level will change the minor trend to up.
The main range is .7571 to .8124. Its retracement zone is .78475 to .7782. The AUD/USD is currently trading inside this zone.
The retracement Zone is currently controlling the longer-term direction of the Forex pair. A sustained move over .78475 will signal the return of buyers. Taking out .7782 will indicate that sellers have taken control.
The daily chart is wide open to the downside with the next major price target the July 5 bottom at .7571.
This article was originally posted on FX Empire
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