AUD/USD Slides Down As Australian Unemployment Report Weighs

FXOpen

The Australian Dollar (AUD) fell broadly against the US Dollar (USD) on Thursday, dragging the price of AUD/USD to less than 0.9280 ahead of the monetary policy statement. The sentiment remains bearish due to Lower High and Lower Low in the recent wave.

Technical Analysis

As of this writing, the pair is being traded around 0.9277, the 76.4% fib level ahead of 0.9202, the swing low of the recent correction wave as demonstrated in the following chart. Not to mention, the 200 Simple Moving Average (SMA) is also sitting around the 0.9200 handle, making it a confluence support area.

audusd

On the upside, the pair is likely to face a hurdle around 0.9317, the 61.8% fib level ahead of 0.9353, the 50% fib level and then 0.9389, the 38.2% fib level. The sentiment remains bearish as far as the 0.9470 resistance area is intact.

Australia Unemployment Rate

The rate of unemployment in Australia increased to 6.4% in July as compared to 6.0% in the month before, down beating the median projection of 6.0%, a government report revealed today. Generally speaking, higher unemployment rate is considered negative for the economy; hence the recent increase in the unemployment spurred selling pressure in the price of AUD/USD.

Monetary Policy Minutes

The Reserve Bank of Australia (RBA) is due to release the minutes from the monetary policy meeting on Friday. Investors will be eyeing the comments from the RBA policymakers very closely to get an idea about the future monetary policy outlook of the Australian economy.

Conclusion

Considering the overall technical and fundamental outlook, selling the pair around the 0.9433 resistance area appears to be a good strategy in short to medium term, the trade should however be stopped out on a daily closing above the 0.9470 handle.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Indices

Although UK-100 Index Is Near All-time Highs, UK Economy Slips into Recession

Technically, a national economic recession is defined as two consecutive quarters of contraction, and yesterday's Office for National Statistics data confirmed that this has happened — UK GDP fell in the third and fourth quarters of 2023 by 0.1% and

Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months

On February 1, 2024, the DOGE/USD rate was = 0.0783. On the last Friday of March, it rose to 0.2150. The rising price means Dogecoin is now the eighth-largest cryptocurrency in the world by market capitalization, overtaking Cardano

Commodities

Market Analysis: Gold Price and Crude Oil Price Gain Bullish Momentum

Gold price started a steady increase above the $2,200 resistance level. Crude oil prices are gaining bullish momentum and might rise toward $85.00.

Important Takeaways for Gold and Oil Prices Analysis Today

· Gold price started a decent increase

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.