AUD/USD back into 0.75 heading into Aussie Trade Balance numbers
The Aussie finished Wednesday's trading flat on the day and is heading into the overnight session trading just beneath the 0.7500 handle once again.
The AUD/USD had a rough ride yesterday, climbing to a session high of 0.7536 before collapsing back underneath the weight of the US Dollar, which surged back against the broader markets after stooping on reaction to the FOMC, which held rates in place for the time being. The FOMC is expected to hike interest rates again in June, with many traders expecting three more hikes in 2018, despite the Fed only calling for an additional two for now.
Thursday brings Australian Trade Balance figures for March at 01:30 GMT, which is expected to contract from February's $825 million to $650 million, while March's Australian Building Permits are forecast to rebound to 1.0% after the -6.2% decline seen in the previous period. On the US side of the pair will be late-April Jobless Claims and preliminary Q1 Labor Costs at 12:30 GMT, closely followed by Markit PMIs at 14:00 GMT. Unit Labor Costs are expected to bump up slightly from 2.5% to 2.9%, while the Composite Markit PMI is expected to tick upwards from 54.8 to 55.2.
AUD/USD analysis: Australian housing data could result in lower lows
AUD/USD Levels to watch
The AUD/USD is being driven by the broad-market US Dollar correction, but the Aussie is struggling to develop any momentum on its on, and as FXStreet's own Valeria Bednarik stated: "the 4 hours chart shows that the intraday advance was contained by a bearish 20 SMA, while technical indicators have turned flat after a modest recovery within negative territory, indicating that buying interest is still limited and that lower lows are still on the table."
Support levels: 0.7470 0.7430 0.7400
Resistance levels: 0.7530 0.7550 0.7590