AUD/USD has been quite volatile and corrective at the support area of 0.7150 to 0.7200 area from where it is expected to push higher for a certain period before pushing lower with the trend. USD has been dominating the pair while AUD is currently trying to recover with better than expected economic results.

This week AUD has been quite mixed with the economic reports. Australia's Retail Sales decreased to 0.0% from the previous value of 0.4% which was expected to be at 0.3%, Company Operating Profits also dropped to 2.0% from the previous value of 5.9% but it performed better than expected with the value of 1.4%, and GDP slowed down to 0.9% from the previous value of 1.1% which also performed better than expected with the value of 0.7%. Besides, the Reserve Bank of Australia left the cash rate unchanged at the record low of 1.50%. Today Australia's Trade Balance report was published with a decrease to 1.55B from the previous figure of 1.94B, the fresh figure was beyond expectations for 1.46B.

On the USD side, ahead of the NFP reports to be published tomorrow, today US ISM Non-Manufacturing PMI report is expected to increase to 56.8 from the previous figure of 55.7, Unemployment Claims are expected to increase to 214k from the previous figure of 213k, Factory Orders are expected to decrease to -0.5% from the previous value of 0.7%, and FOMC Member Williams is going to speak about the upcoming interest rates decisions and future monetary policies that is expected to express neutral stance.

Meanwhile, AUD has been quite positive with the economic reports recently which helped the currency to gain certain momentum and stop the impulsive bearish USD gains in the process. Unless the USD presents macroeconomic data with better than expected results, AUD is likely to gain certain momentum in the process for the coming days.

Now let us look at the technical view. The price is currently residing at the edge of 0.7200 area which if broken with a daily close, further bullish momentum is expected in the pair with a target towards the dynamic level of 20 EMA and 0.7300 area from where the price is going to push lower again, following the bearish trend in the coming days. As the price remains below 0.75 area with a daily close, the bearish bias is expected to continue.

SUPPORT: 0.7150, 0.7200

RESISTANCE: 0.7300, 0.7500

BIAS: BEARISH

MOMENTUM: VOLATILE