Australian dollar continues to fall after the Australian Bureau of Statistics released employment numbers.
The Australian Dollar (AUD) fell further versus the US Dollar (USD) on Thursday, owing to mixed employment statistics issued by the Australian Bureau of Statistics. In the previous session, the AUDUSD pair snapped a two-day winning run due to a speech by Reserve Bank of Australia (RBA) Governor Michele Bullock.
Australia’s unemployment rate exceeded expectations at 3.6%, exceeding the projected 3.7%.
The work situation in Australia appears to be changing. a surprise. The Employment Change fell more than projected in September, putting an unexpected factor into the equation. On the other hand, the unemployment rate had a more favorable shift, decreasing more than projected and straying from the expected consistency.
The housing market in the United States is now befuddling onlookers with contradicting signals.
The US Dollar Index (DXY) recovers from recent losses, which might be ascribed to rising US Treasury rates along with strong US economic statistics. The narrative deepens, however, with dovish statements from multiple Federal Reserve officials, signaling the central bank’s cautious position. In the current economic situation, there is widespread skepticism about tightening monetary policy.
The housing market in the United States appears to be keeping everyone on their toes. toes with confused signals. On the one hand, September Building Permits were more than projected, indicating a bullish situation. Meanwhile, Housing Starts rose, albeit somewhat below market expectations, adding a layer of complication to the story.
The Beige Book’s assessment of “little to no change” in economic activity throughout September and early October provides a larger context.
Australian Dollar Technical Outlook
On the back of mixed Australian data, the Australian dollar falls below the 0.6300 key barrier.
During the Asian session on Thursday, the Australian Dollar trades down around the important support level of 0.6300. The monthly low of 0.6285 appears to be the nearest support. On the upside, a critical resistance is seen around the 21-day Exponential Moving Average (EMA) at the 0.6371 level, which is lined with the main moving average. 0.6400 is the level. A break above the level might take the price to the area around the 23.6% Fibonacci retracement level at 0.6429.
These technical indicators inform traders about probable resistance zones that may impact the direction of the Australian Dollar.
