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AUD/USD Forecast: Neutral-To-Bearish In The Short-Term, Pressuring Static Support Area

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AUD/USD Forecast: Neutral-To-Bearish In The Short-Term, Pressuring Static Support Area

AUD/USD Current Price: 0.6846

  • Australia lost 227K jobs in May, while the unemployment rate jumped to 7.1%.
  • The poor performance of equities weighed on the commodity-linked currency.
  • AUD/USD neutral-to-bearish in the short-term, pressuring static support area.

The Australian dollar came under selling pressure at the beginning of the day, as local employment data missed the market’s expectations. According to the official monthly report, the country lost 227K jobs in May, against -125K forecasted. The unemployment rate jumped to 7.1%, while the Participation Rate decreased to 62.9%. The AUD/USD pair fell to the 0.6830 price zone, recovering afterwards to hit a daily high of 0.6902.

The pair resumed its decline during the American session and bottomed at 0.6835, ending the day a handful of pips above this last, weighed by the sour tone of equities. Australia won’t release macroeconomic data this Friday.

AUD/USD short-term technical outlook

The AUD/USD pair is offering a neutral-to-bearish stance in the short-term. The 4-hour chart shows that it is ending below its 20 and 100 SMA, while technical indicators stand at daily lows, the Momentum heading lower and the RSI consolidating around 42. Given the risk-off mood, chances are of another leg lower, particularly if the pair extends its decline below the mentioned 0.6835 level.

Support levels: 0.6835 0.6795 0.6760

Resistance levels: 0.6935 0.6980 0.7020

View Live Chart for the AUD/USD

 

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