AUD/USD Forecast: Bears lead ahead of Australian employment figures
AUD/USD Current Price: 0.6331
- Australia expected to have lost 40,000 jobs in March amid the coronavirus crisis.
- The poor performance of global equities weighed on the Aussie.
- AUD/USD bearish in the short-term but trading above 0.6300.
The AUD/USD pair turned south this Wednesday, following the poor performance of global equities spurring demand for the greenback. Data coming from the country at the beginning of the day added pressure as Australian Westpac Consumer Confidence fell to -17.7% in April from -3.8% in March. China reported Foreign Direct Investment, which plunged by 10.8% in the year to March. AUD/USD bounced from its daily low of 0.6283 to settle in the 0.6330 price zone, helped by Wall Street which closed in the red but off its daily lows.
During the upcoming Asian session, Australia will release March employment data. The country is expected to have lost 40K jobs, on the back of the pandemic that is hitting the world. The unemployment rate is seen up to 5.5% from 5.1%. The impact of such a negative number could be limited, as investors had already priced it in.
AUD/USD short-term technical outlook
The AUD/USD pair heads into the Asian opening with a short-term bearish tone, given that, in the 4-hour chart, technical indicators remain within negative levels, although with modest downward slopes. In the same chart, the pair stands below a flat 20 SMA, which offers an immediate resistance at around 0.6375.
Support levels: 0.6300 0.6265 0.6230
Resistance levels: 0.6375 0.6400 0.6440
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.
