AUD/USD Down on Poor AU Employment Report
AUD/USD - H1
The pair enters its third straight losing day and sheds more than 0.5% on the week, having taken a double hit from high US CPI Inflation yesterday and poor Employment data from Australia today.
US Core CPI surged to 4.6%y/y in October versus 4.0%y/y in the previous month, boosting the US Dollar yesterday and market bets for rates hikes in the US.
Today's data showed that the Australian economy lost 46.3K jobs in October and Unemplyment Rate jumped to 5.2% (from 4.6% prior), knocking AUD/USD to fresh month lows.
As such, it breached 61.8% Fibonacci of its September low-October high rise and along with unfavorable Fed/RBA monetary policy differential and current cautious risk tones, the pair is exposed to 0.7253-64, but it may be early for bigger decline that would threaten its October lows (0.7200-0.7191).
On the other hand, the Aussie defended 0.7300 and reacts higher as the European session approaches, while the RSI bounces from oversold territory. These can lead to a push for the mid-0.7300s, although broader sentiment will need to improve significantly, in order to extend the rebound towards its EMA100 (0.7080-94) – above which the downward momentum would pause.
Past Performance: Past Performance is not an indicator of future results.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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