In the Asian session on Monday trading on AUD/USD was quite calm, but with the opening of the European markets the buyers gained some advantage in trading. The pair is approaching the strong resistance at 0.6900, despite the release of quite weak statistics from China, where inflation in August decreased by only 0.1% (m/m) and from 2.7% to 2.5% (y/y).
In Australia, the government announced a post-sickness rehabilitation program and allocated A$3.6 billion for this purpose. Now the authorities have launched an investigation to determine the number of citizens in need of medical care after suffering from COVID-19.
The big news for AUD/USD this week will be Australia's labor market report for August, which is scheduled for release on Thursday. Employment is expected to rise by 50,000 jobs for the month.
AUD/USD Technical Analysis
On the Daily, the Bollinger indicator is rebalancing horizontally.
The MACD indicator is still in the negative area, but it is rapidly increasing towards the zero level and has already formed a buy signal.
Stochastic oscillator is steadily approaching the border of the area of maximum values (80%).
If after the "bulls" storm in the morning the price consolidates above 0.6853, then we consider entry into long positions with Take Profit at 0.6950. Stop-loss is set at 0.6800.
Price fixation below 0.6800 will be a signal for the formation of sales with the target level of 0.6700. Stop-loss will be set at 0.6853.