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Market Outlook
US dollar droops, jeopardized by its own data. - Zeal Capital Market

US dollar droops, jeopardized by its own data.

03-06-2022 09:37

“The data suggests slower labour growth in months to come as financial condition tightens.”

Greenback erased its previous gains as recent economic data reinforced risk seeking sentiment among market participants. According to ADP, US Nonfarm Employment Change came in at 128,000, significantly lower when compared to consensus of 300,000. The data has jeopardized bullish speculation among traders for a positive tilted Nonfarm Payrolls report that could cement the need for further tightening from Federal Reserve. Likewise, recent reopening of economic activity after two-months lockdown in Shanghai has also increased the demand for Antipodeans such as Australian and New Zealand dollar.

Quick recap of AUDUSD

The pair extended its recovery following a successful rebound from previous low of 0.6850.

AUDUSD Weekly Technical Analysis

US dollar droops, jeopardized by its own data. - Zeal Capital Market

In weekly perspective, the pair is currently testing at 0.7261, an important threshold to confirm further extension of its upside bias.

AUDUSD Daily Technical Analysis

US dollar droops, jeopardized by its own data. - Zeal Capital Market

An ample amount of upside momentum could be seen from daily perspective. However, the pair is currently testing at 0.7261 which coincides with 200-MA line.

Trading Idea

US dollar droops, jeopardized by its own data. - Zeal Capital Market

ORDER: BUY STOP

ENTRY: 0.7290

STOP LOSS: 0.7210

Target 1: 0.7380

Target 2: 0.7455

ZFX Analyst’s Comment

Overall, the pair has an adequate range to further extend its upside bias in the mid-term. However, it is worth noting that 200-MA line in daily perspective could remain as a setback if bulls failed to takeover the hurdle for the time being.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.

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