AUD/USD: bearish, dollar's weakness prevents a steeper slump
|AUD/USD Current price: 0.7556
- Australian economy lost 20.6K fulltime jobs, hurting the local currency.
- Chinese retail sales, industrial production grew by less-than-expected also weighing on the Aussie.
The Aussie fell overnight against the greenback, although the pair held above the post-Fed's low of 0.7528. Softer than expected Australian employment figures and disappointing Chinese ones were behind the decline. The Australian economy added 12.0K new jobs in May, below the 18.0K expected, but the figure was the result of a 20.6K decline in fulltime employment, and 32.6K new part-time positions bad news for the local economy. The unemployment rate fell to 5.4% as a result of a decreasing participation rate, failing to impress. In China, Retail Sales were up 8.5% in May, well below the expected 9.6% advance. Industrial Production also grew by less-than-expected up 6.8% vs. the March gain of 7.0%. Adding weight on the pair are worldwide equities, which entered a selling spiral post-Fed.
A broadly weaker dollar prevents the pair from extending its decline, but the technical picture is bearish, with the price hovering right below the 0.7565 level, a major Fibonacci resistance, also below its 20 and 100 SMA in the 4 hours chart. The Momentum indicator heads lower in bearish territory, while the RSI lost directional strength but hovers around 40, also supporting a downward extension ahead, particularly on a break below 0.7528, Wednesday's low.
Support levels: 0.7530 0.7505 0.7470
Resistance levels: 0.7565 0.7590 0.7625
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.