AUD/USD Forecast: Static ahead of Australian employment data

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AUD/USD Current Price: 0.7290

  • Aussie undermined by falling gold prices after an uneventful Fed.
  • Australian August employment data expected to reflect the latest Victoria’s lockdown.
  • AUD/USD once again was unable to retain gains beyond 0.7300, bearish risk increased.

The AUD/USD pair hit a daily high of 0.7344 but is ending the day a handful of pips below the 0.7300 level, as the US Federal Reserve hinted no more stimulus coming in the near term. The comment affected gold prices, which in turn weighed on the Aussie. At the begging of the day, Australia published the August Westpac leading Index, which improved from 0.05% to 0.48%. On a down note, HIA New Home Sales declined 14.4% in August, far below the 79.6% advance expected.

Australia will publish this Thursday its August employment data, and as anticipated last month, the latest lockdown in Victoria is expected to have taken its toll on employment. The market expects to see 50K jobs were lost in the month, while the unemployment rate is foreseen at 7.7% from 7.5% in July.

AUD/USD short-term technical outlook

The AUD/USD pair retains its neutral stance in the short-term, as its ending a fifth consecutive day little changed. The 4-hour chart shows that its currently hovering around converging 20 and 100 SMA, while technical indicators have turned lower, now within neutral levels. The upside seems limited with the risk now skewed to the downside. A steeper decline seems likely on a break below 0.7250, the immediate support level.

Support levels: 0.7250 0.7215 0.7170  

Resistance levels: 0.7310 0.7350 0.7385

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