- AUD / USD extends its sharp decline for the third day in a row, from 0.7430 to 0.7300.
- The Job Change in Australia fell to 46,300 and the unemployment rate rose above 5%.
- AUD / USD Technical outlook: A break below 0.7300 exposes the September 30 low at 0.7169.
AUD is down for the third day in a row, down 0.25%, trading at 0.7309 in the US session at the time of writing. The AUD/USD It traded within the 0.7314-40 range during the Asian session, but Australian economic data spurred the decline.
Australia’s employment change fell 46,300 and the unemployment rate rose above 5%
On Thursday, the Australian economic calendar featured consumer inflation expectations for November, which rose 1% more than in October, to 4.6%, from 3.6% in October. The market ignored that data, but the employment numbers collapsed, prompting a selloff of the pair. The Australian Bureau of Statistics revealed that the change in employment for October fell 46,300, well below the 50,000 increase expected by analysts, causing the unemployment rate to jump from 4.7% to 5.2%.
It is worth noting that the jobs survey was conducted from September 26 to October 9, when the lockdown restrictions in New South Wales were just being lowered, while the state of Victoria was still locked in.
Meanwhile, the US economic docket reported US inflation figures, which rose above 6% for the first time in 30 years. It looks like AUD / USD traders capitalized on the move, as evidenced by price action stabilizing around the 0.7300-40 range. On Thursday, the US economic calendar did not present data due to the US Veterans Day holiday.
AUD / USD Price Forecast: Technical Outlook
The daily chart shows that the pair tests 0.7300, extending the downward movement to three days. On its way down, it broke the 50- and 100-day moving averages (DMA), which in conjunction with the 100 DMA, indicates that the AUD / USD pair is biased to the downside.
On the way down, the first support level to break is 0.7300. A break of the latter would expose the September 30 low at 0.7169, but an ascending trend line traveling from the August 20 low to the September 30 low, hovers around the 0.7230-50 range and acts as support before hitting the September 30 low.
Technical levels / Support and resistance levels
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