- AUD/USD finds selling pressure near 0.6450 as US Dollar recovers ahead of ADP Employment data.
- August labor market data carries higher significance as Fed Powell confirmed that further policy action will be data-dependent.
- A fresh downside would appear if the Aussie asset drops below August 17 low around 0.6360
The AUD/USD pair faces selling pressure after a short-lived pullback move to near 0.6450 in the European session. The Aussie asset attracts offers as the US Dollar recovers after a subdued performance ahead of the United States private sector labor market data.
Investors are keenly focusing on US Automated Data Processing (ADP) Employment data for August, which will be published on Wednesday at 12:15. August labor market data carries higher significance as Federal Reserve (Fed) Chair Jerome Powell confirmed at Jackson Hole that further policy action will be data-dependent. And, inflation has become more responsive to the labor market.
Meanwhile, the Australian Dollar fails to hold ground despite Reserve Bank of Australia (RBA) Governor-Designate, Michelle Bullock at the Australian National University, in Canberra, said that the central bank “may have to raise rates again, but watching data carefully.”
AUD/USD delivers a breakdown of a small Ascending Triangle chart pattern formed on an hourly time frame. The Aussie asset is still not exposed to a fresh low as the downside seems supported near 0.6360 while the upside is restricted due to the horizontal resistance plotted from August 15 high around 0.6500.
The 200-period Exponential Moving Average (EMA) continues to act as a barricade for the Australian Dollar. A shift into the bearish range of 20.00-40.00 by the Relative Strength Index (RSI) (14) will activate the downside momentum.
A fresh downside would appear if the Aussie asset dropped below August 17 low around 0.6360. This would expose the asset to the round-level support of 0.6300 followed by 03 November 2022 low at 0.6272.
In an alternate scenario, a recovery move above August 15 high around 0.6522 will drive the asset to August 9 high at 0.6571. Breach of the latter will drive the asset towards August 10 high at 0.6616.
AUD/USD hourly chart
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