Recovery In Us Dollar Pushes The Audusd Lower

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Recovery In Us Dollar Pushes The Audusd Lower

Recovery In US Dollar Pushes The AUD/USD To 0.6450

This week's Friday session was all about the NFP report and the PMI, which showed resilience in the US economy. As a result of this, the US Dollar went a little lower only to find support near the 20 SMA located at 103.30. Since then, the USD has received substantial ground and is trading near 104.20.

The NFP report showed more jobs were added in August as compared to July. Similarly, the earnings also increased, but the pace was a little slow. Furthermore, the unemployment rate went a little higher and caused some concerns about the health of the US labor market.

That's why it wouldn't be wrong to say that it was the data from ISM that really helped the USD to turn bullish. Although even the ISM showed contraction, the reading was still better than last month & thus sparked a bullish revival in the USD.

33% Chance Of November's Rate Hike In USA

After the recent data, there's now a 33% chance of a rate hike in November as compared to earlier odds of 40%. In other words, the health of the US economy is not as good as it was a few months ago and thus may push the Fed to stop and rethink its policies.

In the short-term, the AUD/USD D1 chart is bearish since the USD strength remains the dominant theme. If we look at the RSI, it is hovering near the midline but continues to touch the negative territory. So, based on this indicator alone, we can say that the trend remains AUD bearish and USD bullish.

In addition, the MACD indicator is also showing red bars, which is yet another reason to believe in a bearish AUD/USD. For now, the support levels for the AUD/USD are 0.6430 and then 0.6400. If the 0.6400 is pierced on the daily chart, the next support will be near 0.6390.

On the other hand, the resistance level for the AUD/USD is near the 0.6460 and then the 0.6480. After that, the next stop for the AUD bulls will be 0.6500.

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