AUD/USD Analysis: modest recovery, upside capped ahead of jobs’ report
|AUD/USD Current Price: 0.6761
- Australia expected to have added 15.0K new jobs in September.
- The Westpac Leading Index showed that growth would remain below trend next year.
- AUD/USD bounced from a critical support, but the bullish potential remains quite limited.
The AUD/USD pair bottomed at 0.6723, recovering sharply after several failed attempts to break below a critical Fibonacci support, the 61.8% retracement of its latest daily advance. The pair surged in the US afternoon on the back of poor US data and renewed Brexit optimism pushing speculative interest away from the greenback. Australia released the September Westpac Leading Index, which showed that the growth rate is now below trend, signalizing further economic suffering into the first half of 2020. The index resulted in -0.08% MoM, while the annualized six-month growth rate resulted at -0.92%.
Australia will release September employment data during the upcoming Asian session. The country is expected to have added 15.0K new job s in the month, while the unemployment rate is seen steady at 5.3%. The participation rate is seen steady at 66.2%. The market will be paying attention to the full-time jobs’ creation, rather than the headline reading.
AUD/USD short-term technical outlook
The AUD/USD pair is short-term neutral-to-bullish according to the 4 hours chart, as it recovered above the 38.2% retracement of its latest daily run, although the recovery stalled around a bearish 20 SMA. Technical indicators in the mentioned chart have entered positive levels, with the Momentum losing strength upward and the RSI having turned flat around 52. The positive momentum may strengthen if the pair surges beyond 0.6780, the next Fibonacci resistance.
Support levels: 0.6730 0.6700 0.6670
Resistance levels: 0.6780 0.6825 0.6860
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.