AUD/USD Outlook: Aussie extends weakness on less dovish than expected Fed, rising expectations for RBA rate cut
|AUD/USD
The pair stays firmly in red for the second straight day and test levels below 0.68 handle after break below daily cloud base (0.6815) generated fresh bearish signal for extension below 50% retracement of 0.6887/0.6894 recovery leg.
The pair was hit after less dovish than expected Fed, while rise in unemployment (Aug 5.3% vs July 5.2%) further soured sentiment despite better than expected employment numbers.
Additional pressure comes from rising expectations for RBA rate cut in October, as the market is currently pricing over 75% chance for such action.
Fading bullish momentum on daily chart and south-heading indicators add to negative outlook, with close below daily cloud base needs to boost negative signals test of pivotal support at 0.6766 (Fibo 61.8% of 0.6687/0.6894 and further extension lower on break.
Broken cloud base now reverted to strong resistance which is expected to keep the upside limited and maintain fresh bearish tone.
Res: 0.6803; 0.6815; 0.6830; 0.6852
Sup: 0.6780; 0.6766; 0.6736; 0.6700
Interested in AUD/USD technicals? Check out the key levels
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.