AUD/USD Forecast: Bearish momentum to accelerate below 0.6770

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6783

Australian employment data hit the Aussie badly a day after wages’ growth disappointed.
Risk aversion kept the Aussie under pressure during the American afternoon.
AUD/USD set to extend its decline amid dismal data, US-China trade tensions.

The Australian dollar was among the worst performers this Thursday, falling against the greenback to 0.6769, its lowest in almost a month. The slump was triggered by dismal Australian employment figures, as the economy lost 19,000 positions, against expectations of 15K new jobs. The largest decline was in full-time employment, which declined by 10.3K. Additionally, the unemployment rate ticked higher as expected to 5.3%, despite the participation rate remained steady at 66.1%. The news came after reports showing stagnated wages’ growth. On a positive note, November Consumer Inflation Expectations rose to 4.0% from the previous 3.6%. The macroeconomic calendar in the country will remain light this Friday, as it will only include an RBA’s Debelle speech.

AUD/USD short-term technical outlook

The AUD/USD is trading around 0.6780 ahead of the Asian opening, bearish according to intraday charts. In the 4-hour one, the pair has extended its slump below all of its moving averages, with the 20 SMA gaining downward momentum below the 100 SMA and heading to cross below the 200 SMA. Technical indicators remain in oversold territory, with the Momentum resuming its decline and the RSI at around 26, both anticipating a downward continuation on a break below 0.6770 a strong static support.

Support levels: 0.6770 0.6730 0.6700

Resistance levels: 0.6800 0.6835 0.6860

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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