AUD/USD is taking a beating after Fed Chairwoman Janet Yellen said that a rate hike is “appropriate in the next coming months,” fueling speculations of a rate hike in June’s monetary policy meeting.
Bears are surrounding the Australian dollar as high it loses steam, trading at 0.7175 from last week’s 0.72 level. The MACD indicator is in neutral position.
The first support occurs at 0.7065 and 0.6827, while the first resistance occurs at 0.7243 and 0.7331 subsequently.
The pair is in for a volatile ride this week with a deluge of data coming from both sides. Australia’s Company Gross Operating Profits slowed down again to -4.7 percent in the first quarter after sliding by 3.6 percent in the fourth quarter of 2015. This indicates weakening profits of private firms.
New home sales in April declined by 4.7 percent from the previous reading’s 8.9 percent increase. The country’s current account and number of building approvals will follow today, while trade balance, retail data, and GDP will be released on Tuesday.
On the greenback’s side, consumer confidence and Core CPE Price Index will start the week of significant volatility, trailing to manufacturing PMI and nonfarm payrolls in the later part of the week. Several Fed officials are also scheduled to deliver speeches.