AUD/USD analysis: local woes weigh on Aussie

AUD/USD Current price: 0.7589

  • Australian wage growth at record lows.
  • AUD/USD poised to challenge 0.7570, July low.

The Australian dollar plummeted against the greenback to 0.7575, barely 5 pips above July's monthly low, after Australian wage growth remains near record lows according to quarterly data. The Q3 wage price index was up 0.5%, when compared to the previous quarter, and up by 2.0% over the year. Quarterly ages growth has been within the lower end of its range, between 0.4% and 0.6% for more than four years. Despite dollar's sell-off, the pair is unable to regain firmly the 0.7600 threshold. 

With US data around the corner, the pair is short-term bearish, developing well below its 20 SMA in the 4 hours chart, and with technical indicators holding within negative territory, directionless after the 20 pips bounce from the mentioned daily low. The RSI indicator maintains a shy bearish slope around 36, all of which leans the risk towards the downside. Below 0.7570, July's low, the downward momentum will likely accelerate with the pair then poised to test 0.7535, en route to 0.7490. The pair would need to recover above 0.7620 to see the downward pressure easing, with scope then to advance up to 0.7660 where selling interest awaits.

Support levels: 0.7570 0.7535 0.7490

Resistance levels: 0.7620 0.7660 0.7695

View Live Chart for the AUD/USD

 

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