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

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

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: ForexMarkets
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!