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AUD/USD Forecast: Eases Within Range And Turned Bearish In The Short-Term

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AUD/USD Forecast: Eases Within Range And Turned Bearish In The Short-Term

AUD/USD Current Price: 0.7141

  • Australia recovered 114.7K job positions in July, unemployment rate at 7.5%.
  • Chinese Industrial Production and Retail Sales to be out early Asia.
  • AUD/USD eases within range and turned bearish in the short-term.

The AUD/USD pair peaked at 0.7187 at the beginning of the day, helped by encouraging Australian employment figures. According to the official release, the country added 114.7K new jobs in July, largely surpassing the 40K expected. Of such total, 43.5K were full-time positions. Also, the unemployment rate increased to 7.5%, better than the 7.8% expected. The country also released August Consumer Inflation Expectations were up 3.3% better than the previous 3.2% although below the 3.4% forecast. The negative tone of equities in Asia and Europe, however, capped advances in the pair, which now trades at around 0.7140, marginally down for the day.

Friday will be quite a busy day, starting with data coming from China, The country will publish July Industrial Production, foreseen at 5.1% YoY, and Retail Sales for the same month, seen up by 0.1% YoY. Australia won’t publish relevant macroeconomic data, but RBA’s Governor Lowe is due to testify before the House of Representatives' Standing Committee on Economics.

AUD/USD short-term technical outlook

The 4-hour chart for the AUD/USD pair shows that the pair has broken below its 20 and 100 SMA, both converging around 0.7160 and providing dynamic resistance. Technical indicators, in the meantime, maintain their bearish slopes within negative levels, anticipating a new leg south. The immediate support is the weekly low at 0.7110, followed by a more relevant one at 0.7070.

Support levels: 0.7110 0.7070 0.7030

Resistance levels: 0.7185 0.7220 0.7260

View Live Chart for the AUD/USD

 

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