The Australian Dollar bulls displayed their first round of challenges towards the US$0.7370-80 and hit an intraday high at US$0.7396, which was followed by a modest retreat, but unfortunately, failed to close above this level at the New York’s session end to confirm the bullish Japanese candlestick.
At the beginning of the day, the National Australia Bank’s Business Confidence for Q2 missed the expected (QoQ) reading of 21 with 17.
On Wednesday, the preliminary Australian retail sales for June missed the expected (MoM) change of -0.5% with a change of -1.8%.
The Westpac leading index for the period fell 0.06% compared to the previous period’s decline of 0.04%.
Besides the release of the Australian CPI next week, market participants will also be glued to their screens when the U.S. Federal Reserve convenes its two-day monetary policy meeting, which is followed by the release of the U.S. GDP.
The posted bullish outside range day (engulfing Japanese candlestick) on Wednesday is still intact from a technical assessment.
This, in terms, may keep the bullish path open until reaching the shores of the US$0.7480-90 region.
However, we still require confirmation of the posted engulfing Japanese candlestick.
Confirmation from this bullish candlestick would be viewed from a New York close above US$0.7370-80.
The Relative Strength Index (RSI) 3-daily ‘lookback’ indicator supports is neutral; however, it is attempting to correct a positive bias since the rebound.
Meanwhile, the Moving Average Convergence Divergence (MACD) holds a negative signal but should be monitored as it approaches the 0.000 axes.
The Average Directional Movement Index (ADX) trend indicator decline suggests the presence of a trading market and the absence of a trend.