Forex Market: AUD/USD forecast for Monday

During Friday’s trading session AUD/USD traded within the range of 0.9203-0.9280 and closed at 0.9277, gaining 0.04% for the day and 0.09% for the week.

Fundamental view

Australia

At 1:30 GMT on Monday the Australia and New Zealand Banking Group (ANZ) will publish data regarding the number of job advertisements in Australia in April. This includes advertisements in the major metropolitan newspapers and on the Internet sites. The corresponding index, based on a survey by ANZ, climbed 1.4% in March compared to February. This indicator is used for projecting growth in employment in Australia, as it reflects labor market conditions in the future. An increase in the number of jobs would have a bullish effect on the Aussie.

Also at 1:30 GMT Australian Bureau of Statistics is to report on the number of building approvals for new projects in construction during March. In February compared to January building permits, issued by the government, were 5% less. In annual terms, however, the number of permits jumped 23.2% in February. Building approvals, as an indicator, provide information regarding demand in Australia’s housing market. A higher than anticipated number would have a bullish effect on the national currency.

United States

Activity in United States’ sector of services probably continued to expand during April, with the corresponding non-manufacturing PMI coming in at a reading of 54.1, according to expectations, from 53.1 in March. This is a compound index, based on the values of four equally-weighted components, that comprise it. These sub-indexes reflect seasonally adjusted new orders, seasonally adjusted employment, seasonally adjusted business activity and supplier deliveries.

The business report is based on data compiled from monthly replies to questions asked of over 370 purchasing and supply executives operating in over 62 different industries, which represent nine divisions from the Standard Industrial Classification (SIC) categories. Readings above the key level of 50.0 are indicative of expanding activity. In case market expectations are exceeded, US dollar will receive a boost. The Institute for Supply Management (ISM) is to release the official reading at 14:00 GMT on Monday.

Technical view

According to Binary Tribune’s daily analysis, in case AUD/USD manages to breach the first resistance level at 0.9304, it will probably continue up to test 0.9330. In case the second key resistance is broken, the pair will probably attempt to advance to 0.9381.

If AUD/USD manages to breach the first key support at 0.9227, it will probably continue to slide and test 0.9176. With this second key support broken, the movement to the downside will probably continue to 0.9150.