AUD/USD analysis: equities lead the way

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7906

Following a strong start to the day, the Aussie edged lower against the greenback, retreating from a fresh 2-week high of 0.7962. The early advance was triggered by an improvement July employment figures, although full-time jobs decreased sharply. Nevertheless, the Australian Bureau of Statistics showed that the Australian economy created 27,900 new job positions (seasonally adjusted), exceeding the number of 20,000 expected, while the unemployment rate fell as expected to 5.6%, despite a modest uptick in the participation rate to 65.1%. Increasing risk aversion and falling stocks sent the pair lower in the US afternoon, now pressuring the 0.7600 level ahead of the Asian opening. The 4 hours chart shows that the price remains above a marginally bullish 20 SMA, while the Momentum indicator consolidates within positive territory, and the RSI turned lower, currently at 56, all of which makes possible a downward extension for the last day of the week that will gain downward momentum on a break below 0.7870, the immediate support.

Support levels: 0.7870 0.7830 0.7785

Resistance levels: 0.7935 0.7970 0.8010

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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