AUD/USD analysis: failure to regain 0.7300 maintains the risk skewed to the downside
AUD/USD Current price: 0.7261
- Australian employment data came in below market's expectations, limiting AUD strength.
- USD demand now overshadowing risk-related sentiment, AUD buyers ignore soaring equities.
The Aussie gathered some support from the better performance of equities and commodities at the beginning of the day, which resulted in the AUD/USD pair hitting 0.7286, despite the Australian job's monthly report fell short of market's expectations. According to the official figures, the country lost 3,900 jobs in July, although the unemployment rate fell to 5.3%, the lowest since 2012 as the participation rate decreased to 65.5% from 65.7%. On a positive note, full-time employment climbed 19.3K, while part-time employment decreased by 23.2K. The pair failed to rally even during the US afternoon despite the sharp advance in Wall Street, as comments from US Treasury Secretary Mnuchin triggered another round of USD buying. Now trading in the 0.7260 region, the pair has a limited upward potential according to technical readings in the 4 hours chart, as its barely holding above a flat 20 SMA, while technical indicators lost upward strength, the Momentum now flat around its midline and the RSI turning lower around 46, this last, leaning the risk toward the downside for the upcoming sessions.
Support levels: 0.7230 0.7190 0.7155
Resistance levels: 0.7285 0.7310 0.7340
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.
