AUD/USD eases off daily highs, drops below 100-DMA post-US data
|The AUD/USD pair lost traction in the early NA session and erased a small part of its daily gains. As of writing, the pair was trading at 0.7862, still up 0.2% on the day.
Earlier in the day, the data from Australia showed that the unemployment rate eased to 5.5% from 5.6% in September. However, the aussie failed to take advantage of this data as the underlying details of the report revealed that the full-time employment only increased by 6.1K following a robust 39.5K in August. Although the pair came under pressure after the data, it was able to find support ahead of 0.78 as the greenback extended its downfall amid a lack of fresh catalysts that could bring the buyers back into the market.
After rising to a fresh session high at 0.7875 and peeking above the critical 100-DMA level, which is located at 0.7870, the pair started to retrace its gains as the greenback staged a modest recovery on upbeat macroeconomic data from the U.S. The data released by the US Department of Labor on Thursday showed that the weekly initial jobless claims decreased by 22K to 222K, the lowest reading since 1973, while the Philly Fed Manufacturing Index advanced to 27.9 in October from 23.8 in September. The US Dollar Index, which tested the 93 mark ahead of the data, was last seen at 93.10, down 0.2% on the day.
- US: Weekly initial claims was 222,000, a decrease of 22,000 from previous week
- Philly Fed: Manufacturing firms reported continued growth in October
Technical outlook
The immediate hurdle for the pair could be seen at 0.7870 (100-DMA). With a daily close above that level, the pair could aim for 0.7915 (50-DMA) and 0.8000 (psychological level). On the flip side, supports align at 0.7830 (20-DMA), 0.7770 (Oct. 11 low) and 0.7730 (Oct. 6 low).
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