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AUD/USD Forecast: Shows An Increasingly Bearish Potential But Needs To Break Below 0.6400

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AUD/USD Forecast: Shows An Increasingly Bearish Potential But Needs To Break Below 0.6400

AUD/USD Current Price: 0.6435

  • Australia lost almost 600K jobs’ positions in April, worse than anticipated.
  • Chinese Industrial Production and Retail Sales to set the tone in Asia.
  • AUD/USD shows an increasingly bearish potential but needs to break below 0.6400.

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The AUD/USD pair paid little attention to Australian data, depending on the greenback strength or weakness once again. Australia reported its April employment data at the beginning of the day, which showed that 594,300 jobs’ positions were lost. The unemployment rate increased to 6.2%, better than the 8.3% expected, although the participation rate fell to 63.5%. The sour tone of worldwide equities weighed on the pair, partially offset by rising commodities’ prices.

Australia won’t publish macroeconomic data this Friday, but China will report April Industrial Production, seen up by 1.5%, and Retail Sales for the same month, expected to have declined by 7%, after falling by 15.8% in March.

The AUD/USD pair is down for a fourth consecutive day, trading at around 0.6435 ahead of the Asian opening. The short term picture indicates that the pair could extend its decline during the upcoming sessions, as the pair has settled below its 20 and 100 SMA, with the shorter one gaining bearish strength above the larger one. Technical indicators are within negative levels, the momentum heading lower and the RSI consolidating around 42. The pair bottomed at 0.6403 this Thursday, with a break below the 0.6400 figure probably confirming another leg south.

Support levels: 0.6400 0.6370 0.6325

Resistance levels: 0.6475 0.6510 0.6550

View Live Chart for the AUD/USD

 

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Posted-In: AUD/USD FXStreetNews Forex Markets