- AUD/USD is retreating towards 0.6450 on Thursday.
- Market sentiment is turning lower following the release of US data.
- US housing data will close the trading week.
AUD/USD posted some early gains on Thursday following better-than-expected data from Australia, but the release of erroneous economic figures in the US is causing a broad decline in market sentiment.
Encouraging labor market and employment data pushed the Australian Dollar (AUD) up as high as 0.6508 against the US Dollar (USD), ahead of a widespread failure in US jobless claims and industrial capacity. reduced risk appetite during trading on Thursday. The AUD/USD pair is now in a testing phase towards 0.6450 in the second half of trading on Thursday.
Australia added 55,000 jobs in October, beating forecasts of 20,000 and far exceeding September’s figure of 7.8,000, which was revised up from 6.7,000. On the US front, initial US jobless claims and industrial capacity dampened risk appetite on Thursday.
In the United States, initial claims for unemployment benefits for the week of November 10 stood at 231,000, the highest figure in the last two years. Markets were forecasting 220,000, up one point from the previous week’s 218,000 (revised from 217,000).
US Industrial Production fell 0.6% in October, worse than the expected 0.1% contraction, down from the previous month’s meager 0.1% (revised downward from 0.3%).
Housing starts and construction permits for October will be published in the United States on Friday. The median of the market forecasts expects slight falls in both figures: housing starts will fall from 1,358 million to 1.35 million; construction permits will decrease from 1.471 million to 1.45 million.
AUD/USD Technical Outlook
With the Australian Dollar retreating towards the 0.6450 area, a sustained decline in the AUD would take the pair back towards the 0.6400 area, where the 50-day SMA currently awaits.
The ceiling sits just below 0.6550, with a descending 200-day SMA exerting downward pressure from 0.660.
AUD/USD Daily Chart
AUD/USD technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
