Being driven by bearish sentiment on the US dollar after serie of negative industrial data and worsened GDP outlook of the International Monetary Fund (IMF), the Australian dollar reached resistance level, mentioned in our previous article, at $0.7664, now calming and turning its attention to employment data, due to be released early on Thursday.
US dollar saw the IMF cutting its 2015 GDP forecast to only 3.1% in comparison with previous 3.6%. Moreover, negative industrial production, published by the Federal Reserve (Fed), showing a drop of 0.6% in March, while NY Fed's Empire State manufacturing productions informed about negative performance, reporting -1.19 added to the sentiment selling the US dollar against most of its major counterparts.
Market will now turn its attention to Australian Bureau of Statistics, releasing employment change and unemployment rate report for the month of March at 1:30am GMT. As the labor market remains one of the most monitored aspects of country's economy, mainly due to a relevant drop in mining sector, any positive outcome could boost the Australian dollar even further, while negative conversely to the downside.
From a long-term perspective, we remain bearish on the AUD/USD currency pair, although short-term correction could be seen as during this session.
From the technical point of view, our TP is set at $0.7553, with previous support at $0.7612 and another support at $0.7441.
Bulls may be expecting further increase, so TP should be set at $0.7719 or later at $0.7828.
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