- The dollar looks stronger ahead of the October US employment report.
- AUD / USD validates a strong weekly decline, after losing 0.7400.
The AUD / USD is falling on Friday in advance of the release of the US employment report. The pair fell to 0.7365, the lowest level in three weeks and remains weak below 0.7380.
The Aussie is on track to end a five-week streak with gains against the dollar. The sharp pullback at the moment is taking two and a half week gains. The main factor behind the movement is the general strength of the dollar.
The positive US economic data plus the announcement of the Fed’s buyout program cut, they have been drivers of demand for the dollar. In minutes the October employment report will be known, which could continue to give strength to the greenback or favor some type of correction. The expectation is an increase in employment of 425,000.
The other negative factor for the AUD / USD was what left the meeting of the Reserve Bank of Australia, along with the monetary policy statement released on Friday. The central bank indicated that the main scenario sees rate hikes probably in 2024 and stated that it is prepared to be patient regarding the monetary tightening.
AUD / USD is at 0.7370 / 75, where it passes the 20-week moving average. Further down, a strong support looms at the 0.7320 area that should contain the downs. To the upside, the 0.7410 zone has become the short-term resistance to breaking to ease pressures. If it surpasses 0.7470, the pair would be ready for a test at 0.7500.
Technical levels
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