On Friday, May 2, bidding on a pair AUD/USD ended virtually "zero" results, while volatility during the day was at a high enough level. "So, published in the U.S. labor market data, which are traditionally the key driver on the trading floors at the beginning of the month, were unexpectedly strong, leading to increased appetite for risk among investors", - the analysts of Forex Broker FOREX MMCIS group . As the results in April, the unemployment rate had fallen to 6.3% (forecast 6.6%) and the number of jobs outside agriculture increased by 288 thousand, 72 thousand at once better than the average market expectations.
Australian dollar began to give ground dollar.
Even before the publication of data in the U.S. The pair got strong bearish momentum as market participants expected a less optimistic results. However, when it became clear that the U.S. economy recovers the labor market at a faster pace than expected by experts, risk appetite grew at sites symmetrically reduce it before the release, experts Forex. As a result, trading ended with the pair on a few points, which means maintaining a certain market growth potential, which is being implemented today.
So, following the release of weak data from the Australian construction sector (number of permits decreased in March by 3.5%), the Australian dollar began to give way greenbacks, and after the publication of news from China drop in prices accelerated couples only. As the report showed HSBC, in April the final value of China's PMI manufacturing index fell to 48.1 points versus 48.4 points in the forecast, which negatively affected the dynamics of trading. Nevertheless, today, May 5, the pair managed to recover to the level of the opening day, which analysts believe the company's Forex FOREX MMCIS group, speaks in favor of "bullish" sentiment ahead of the publication of the key rate and the RBA statement accompanying the central bank.
On the graph are present supporting technical indicators and tools:
Simple moving average of closing prices (SMA 3), moved forward into three periods (3x3). Used to determine the current short-term market trends.
Simple moving average of closing prices (SMA 25), moved forward five periods (25x5). Helps identify long-term trends in the market.
Fibonacci levels - price levels (correction and expansion), based on Fibonacci ratios. Level becomes support if the price is approaching it from above and resistance - if the price is approaching it from below. Calculated two major Fibonacci level: one at 0,382 corrective movement (38.2% correction), and the other - at the level of 0,618 (61.8% correction) reversing the previous trend movement. Also used the 50% retracement level, as one of the most urgent for most currency pairs. 