Market Overview

AUD/USD Forecast: Technically Bearish, And The Market's Sentiment Favors Another Leg South

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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

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

 

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Posted-In: Forex Markets