AUD/USD has been quite impulsive in the bearish bias recently which nearly engulfed the previous bullish pressure after bouncing off the 0.7500-50 area. AUD has been quite positive amid the recent economic reports, including Retail Sales, but it could not keep the momentum throughout the week.
Recently, AIG Construction Index report was published with a slight decrease to 54.0 from the previous figure of 55.4 and Trade Balance report was also published with a decrease to 0.98B as expected from the previous figure of 1.73B. The worse economic reports is speculated as the main reasons for the recent impulsive bearish pressure in the pair against AUD in the process.
On the other hand, today US Final Wholesale Inventories report is going to be published which is expected to be unchanged at 0.0%. Moreover, today ahead of G7 Meeting, USD is expected to trade with higher volatility with the gains in the process.
As for the current scenario, USD is expected to take the lead against AUD in the coming days. If USD manages to push the price below 0.75, further bearish pressure is expected in future.
Now let us look at the technical view. The price is currently quite bearish with the gains leading quickly towards 0.7500-50 support area while breaching below the dynamic level of 20 EMA support. The recent bearish pressure was quite impulsive which nearly engulfed the previous impulsive bullish pressure along the way. The price is currently expected to push lower towards 0.7500-50 area and if the price manages to break below 0.75 with a daily close in the coming days then further bearish momentum can be observed proceeding impulsively towards 0.7375 area in the coming days. As the price remains below 0.7700 area, further bearish pressure is expected in this pair.