The Australian dollar had tested important resistance level of 0.8020 and went up to 0.8026. At the same time monetary policy report of the Reserve bank of Australia has outlined poor state of the national economy. According to the report, Australian GDP can fall in 2015-2916, while inflation rate can amount to 2.5% against the earlier forecast of 2-2.2%. Note also that in April unemployment rate increased in Australia, amounting to 6.2%. It happens because the number of people working full time has reduced. If current economic indices continue to maintain, the Reserve Bank of Australia will introduce monetary tightening policy and increase interest rates in the near future. Therefore, the decline in the pair AUD/USD can resume.
Support and resistance
The nearest resistance level is 0.8026 – 7/8 Murray.
Support level: 0.7996 – 1/8 Murray.
Short positions are recommended after breakdown of the level of 0.7996 with protective orders of 0.8025 and the target of 0.7935.