AUD/USD tested 0.7500 area during the past week. Australian dollar was supported as the Reserve bank of Australia kept the benchmark interest rate unchanged, iron ore prices recovered and the expectations of the US Federal Reserve’s rate hike at the next meetings declined.
However, many experts still think that the RBA will have to cut rates in August. The latest data from China aren’t very encouraging, and the release of the nation’s industrial production and retail sales figures on Sunday will be a test for higher-yielding currencies, such as Aussie.
The pair has retraced 50% of April-May decline and ran into strong resistance formed by the previous lows of the March-April triple top, as well as the daily Ichimoku Cloud. Potential correction targets include 0.7300 and 0.7260.
In Australia’s economic calendar next week pay attention to the nation’s labor market figures on Thursday.