AUD/USD Forecast: At Risk Of Extending Its Slump To Fresh Multi-Year Lows

AUD/USD Current Price: 0.5781

• RBA expected to cut rates by 25bps, could announce additional measures.
• Australia is seen having added 10,000 new jobs in February.
• AUD/USD bounced from 0.5700, at risk of extending its slump to fresh multi-year lows.

Commodity-linked currencies were among the worst performers this Wednesday, with the AUD/USD pair falling to 0.5701, a level that was last seen in January 2003. The Aussie suffered from the ruling panic and need of funding, which sent speculative interest into the greenback, but was also affected by local data. The Australian Westpac Leading Index came in at -0.42% MoM in February, far below the previous, within contraction territory for the fifteenth consecutive month.

Australia is having a busy Thursday, as the country will publish February employment data, while the RBA has an emergency monetary policy. The country is expected to have added 10,000 new jobs in the month, while the unemployment rate is expected to remain unchanged at 5.3%. In January, the country added 13.5K, with 46.2K full-time positions added and part-time jobs down by 32.7K.  As for the RBA, the central bank is expected to cut rates by 25 bps to a record low of 0.25%. Policymakers would likely announce additional stimulus measures.

AUD/USD Short-Term Technical Outlook

The AUD/USD pair bounced from the mentioned low, currently trading in the 0.5770 price zone. The pair has fallen for eighth consecutive days, and despite being extremely oversold, it gives no signs of changing course. In the 4-hour chart, it keeps developing below all of its moving averages, which maintain their downward slopes. Technical indicators stand within extreme oversold levels, barely losing their strength downward.

Support levels: 0.5750 0.5700 0.5640

Resistance levels: 0.5860 0.5900 0.5940

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