Australian dollar has continued to lose momentum.
The Australian Dollar (AUD) is down for the third day in a row, owing to persistent risk-off sentiment. The AUDUSD pair, on the other hand, benefited from a weaker US Dollar (USD) following comments by Federal Reserve (Fed) Chair Jerome Powell on Thursday. Powell’s signal that the Fed will The fact that the Fed does not intend to hike rates in the near future lends support to the pair.
The unemployment rate in Australia exceeded estimates, hovering at 3.6%.
The work situation in Australia is changing in interesting ways. Employment Change fell more than predicted in September, adding an unexpected twist to the picture. On the plus side, the unemployment rate decreased faster than projected, breaking from the usual pattern.
The US Dollar Index (DXY) recovers from recent losses, which might be ascribed to rising US Treasury rates along with strong US economic statistics.
labor market in the United States (US) remains strong.
The labor market in the United States (US) remains strong. The weekly Initial Jobless Claims rate has fallen to its lowest level since January, indicating a strong and resilient labor market. Existing, on the other hand Home sales have dropped to their lowest level since 2010, indicating that the housing sector is facing difficulties.
The drop in existing house sales is especially notable, indicating the detrimental impact of increasing mortgage rates on housing market confidence.
Australian Dollar Technical Outlook
After comments by Fed Chairman Powell, the Australian dollar is hovering above the 0.6300 key barrier.
On Friday, the Australian Dollar is trading lower at 0.6310, in line with substantial support at 0.6300. The monthly low of 0.6285 serves as immediate support.
On the upside, the 14-day Exponential Moving Average (EMA) at 0.6354 is a crucial resistance level, followed by the main milestone of 0.6400. A break above this level has the ability to take the price up to the 23.6% Fibonacci retracement level of 0.6429.
