Forex Market: AUD/USD daily forecast

During Friday’s trading session AUD/USD traded within the range of 0.9253-0.9290 and closed at 0.9284.

At 6:56 GMT AUD/USD traded at 0.9291, gaining 0.19% for the day. The pair broke the first and the second key resistances and touched a daily high at 0.9316 at 4:30 GMT.

Fundamental view

Australia

At 23:30 GMT the Australian Industry Group (AIG) is expected to announce the results from its survey on short-term and intermediate-term conditions in the sector of construction during April. Surveyed companies answer questions associated with production, employment, prices, supplier deliveries, inventories and new orders. The seasonally adjusted Performance of Construction Index (PCI) for Australia came in at a reading of 46.2 in March. Values below the key level of 50.0 are indicative of contraction in activity. An improvement in the value of this indicator would provide a certain support to Australian dollar.

United States

The deficit on United States trade balance probably shrank to 40.50 billion USD during March, according to the median forecast by experts, from a deficit of 42.30 billion USD in February. The trade balance, as an indicator, measures the difference in value between country’s exported and imported goods and services during the reported period. It reflects the net export of goods and services, or one of the components to form country’s Gross Domestic Product. Generally, exports reflect economic growth, while imports indicate domestic demand. In case the trade balance deficit contracts more than expected, this will provide support to US dollar. The Bureau of Economic Analysis is to release the official figure at 12:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case AUD/USD manages to breach the first resistance level at 0.9298, it will probably continue up to test 0.9313. In case the second key resistance is broken, the pair will probably attempt to advance to 0.9335.

If AUD/USD manages to breach the first key support at 0.9261, it will probably continue to slide and test 0.9239. With this second key support broken, the movement to the downside will probably continue to 0.9224.