AUD/USD Forecast: Waiting for an update on the Australian employment situation

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7167

Australia expected to have lost 35,000 jobs in September amid Victoria lockdown.
Westpac Consumer Confidence beat expectations in October but declined from its previous reading.
AUD/USD is technically bearish, and the market’s sentiment favors another leg south.

The AUD/USD pair is ending the day as it started around 0.7160, having spent it within a well-limited range. The pair advanced to 0.7190, but it changed course with Wall Street’s slump mid-US session. The Aussie remained subdued, despite Westpac Consumer Confidence resulted in 11.9% in October, better than the 9.9% forecast, although below the previous 18%.

This Thursday Australia will publish its September employment figures. The country is expected to have lost 35,000 jobs in the month, while the unemployment rate is seen at 7.1%, up from 6.8% in August. Additionally, China will publish September inflation figures, with the CPI foreseen at 1.8% YoY.

AUD/USD short-term technical outlook

The AUD/USD pair maintains its bearish stance in the short-term, although the upcoming direction will likely be dictated by the outcome of the employment report. The 4-hour chart shows that it keeps trading below its 20 SMA while above a bearish 100 SMA. Technical indicators have stabilized within negative levels, skewing the risk to the downside without confirming further declines ahead.

Support levels: 0.7130 0.7095 0.7050

Resistance levels: 0.7205 0.7240 0.7290

View Live Chart for the AUD/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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.

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.