AUD/USD to extend its consolidative phase with risk skewing to the upside

The AUD/USD pair has continued to consolidate gains, spending a second consecutive week above the 0.7700 level but unable to break through the 0.7800 mark. The aussie neutral in the long-term, with bears still side-lined, Valeria Bednarik, Chief Analyst at FXStreet, briefs.

AUD/USD is technically neutral in the longer perspective, with a mildly bullish potential

“On Tuesday, the RBA will announce its decision on Monetary Policy, although central bankers are expected to maintain the current policy on hold. As the week develops, Australia will also offer updates on Services PMI and housing-related data.”

“The US macroeconomic calendar will include the April official ISM PMIs, expected to show persistent economic growth. The focus will be on employment-related data, starting on Wednesday with the ADP survey on private jobs creation and ending on Friday with the Nonfarm Payrolls report. The country is expected to have added 926K new jobs in April, while the unemployment rate is expected to have shrunk to 5.8% from 6% in the previous month.”

“A corrective decline could take place on a break below the 0.7690 support, with the next levels to watch at 0.7600 and 0.7531.”

“To the upside, the pair needs to advance beyond 0.7820 to be able to extend its gains toward the 0.7900 region.”