Currency Analyst since 2010

AUD/USD: bad news from Australia (video)

By Elizaveta Belugina

AUD/USD was doing rather well until Australia released very discouraging labor market data which showed the increase in unemployment from 6.0% to 6.4%.

Such bad reading was unexpected. The pair failed to overcome the daily Cloud and settle above $0.9350 and slid to $0.9240 before returning to the support line connecting 2 July lows in the area of $0.9265/70. On Friday Aussie feels like forming a hammer, though his pattern isn’t usually very reliable on AUD daily chart. Corrections up should be limited by $0.9300, $0.9325/35 and $0.9350. On the downside target is still at $0.9210/00.

The Reserve Bank of Australia left its monetary policy unchanged, but in its quarterly statement the regulator repeated that AUD remains high by historical standards, and that the fall in terms of trade means AUD could drop over time. In addition, the RBA also trimmed growth and inflation outlooks.

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