AUD/USD Forecast: Pressuring the year’s low amid risk-off

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7419

Australia created 29.1K job positions in June, missing the market’s expectations.
Chinese tepid growth data from the second quarter undermined the market’s sentiment.
AUD/USD is about to challenge the 0.7410 support area.

The AUD/USD pair trades near this 2021 low of 0.7409. The pair was affected by a dismal mood, which started in Asia after China published a disappointing Q2 Gross Domestic Product that printed at 7.9% from 18.3% in the first quarter. Australian employment figures were softer than anticipated, as the country added 29.1K new jobs in June, while the Unemployment Rate unexpectedly contracted to 4.9% as the Participation Rate held steady at 66.2%. Consumer Inflation Expectations resulted in 3.7% in July, below the previous 4.4%.

The poor performance of Wall Street maintained the pair under pressure through the American session. Australia won’t publish macroeconomic figures on Friday.

AUD/USD short-term technical outlook

The AUD/USD pair is poised to break below the year’s low according to near-term technical readings. The 4-our chart shows that moving averages head firmly lower, far above the current level. The Momentum indicator diverges higher within negative levels, but as long as it remains below its midline, chances of recovery are pretty much null. On the other hand, the RSI indicator resumed its decline and approaches oversold readings, reflecting increased selling interest.

Support levels: 0.7455 0.7410 0.7370

Resistance levels: 0.7490 0.7530 0.7570

View Live Chart for the AUD/USD

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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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