Aussie Dollar Continuous Losing Streak amid Key US Job Data

Share news

The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Friday, decreasing the price of AUDUSD to less than 0.7600 following some key economic releases. The technical bias shall remain bearish because of a lower low in the ongoing downside move.

AUD/USD Technical Analysis

As of this writing, the pair is being traded around 0.7550. A support can be noted around 0.7500, an immediate horizontal support ahead of 0.7450 the psychological number and then 0.7367, another key horizontal support as demonstrated in the given below chart.

audusddaily

On the upside, a hurdle can be noted near 0.8024, an immediate horizontal resistance level ahead of 0.8100, the psychological level and then 0.8249, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.8024 resistance area is intact.

US Jobless Claims

U.S. industrial production recorded its biggest increase in six months in October as the drag from hurricane-related disruptions unwound, but the underlying growth trend in output at the nation’s factories, mines and utility plants remained moderate. Other data on Thursday showed an unexpected rise in new filings for unemployment benefits last week in part because of the processing of a backlog of applications from Puerto Rico. The reports are consistent with an economy growing at a steady clip and tightening labor market conditions, likely keeping the Federal Reserve on course to raise interest rates next month.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.