Audusd Struggles After Jobs Data

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Audusd Struggles After Jobs Data

Aud/Usd Struggles Below 0.6500

AUD/USD is hovering at lows, which were only last seen in August 2024. For now, AUD/USD is trading under 0.6500 which is now acting as a solid resistance.

The AUD/USD came under pressure after the release of mixed Australian employment data. Recently, RBA Bullock also commented on how the current interest rate is enough and doesn't require any more rate hikes.

Aud/Usd To Find Support At 0.6479

So, if the AUD/USD keeps moving lower, the next level to watch will be 0.6479. After that, the bottom of year 2024 is present at 0.6347 which is also a solid support.

On the flip side, the 200 SMA will serve as the nearest resistance for AUD/USD around 0.6628. After that, the next target is the high from 7th Nov near 0.6687. Also, the 100 SMA is also present near this level on the AUD/USD daily chart.

On the H4 chart, it seems that the negative trend is still in place with the first support at 0.6479 and the first resistance at 0.6585. Also, the RSI is below 28 on the H4 chart which shows that AUD/USD might be oversold.

Meanwhile, the US Dollar advance continues and has already pushed the DXY to record highs. However, its not the same with AUD which has dipped below the 0.6500 and is moving further away from its 200 SMA.

The weakness of AUD is also driven by weak prices of Iron and Copper ore. In fact, the commodity prices have gone down across the board, affecting the AUD.

The recent data from China showed that consumer price growth was one of the slowest. This has raised concerns that the recent stimulus was not enough to stop the deflation.

At the last meeting, the RBA also kept rates steady and commented on how the inflation is gradually moving towards their target. With that in mind, we can expect the first rate cut from RBA in May 2025 or sometime around that.

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