The AUD/USD currency pair plunged on Friday to trade at a new 2-week low of about 0.6764 following yesterday’s release of the Australian Jobs data. The currency pair has been on a bearish run over the last week coming ta the bac of a major rally at the start of the month.
The pair has now dropped to touch the boundary to the oversold level of the relative strength index in the 60-min chart. This could trigger an immediate rebound, but a journey south cannot be ruled out yet.
AUD/USD Fundamentals Overview
From a fundamental perspective, the AUD/USD currency pair is trading at the back of a decisive day in the Australian market. On Thursday, Australia released the Jobs data for August, which showed that Fulltime Employment -15.4k jobs down from 32k jobs in the previous period.
On the other hand, part-time employment saw a rapid increase in new jobs registering a total of 50.2k jobs up from 6.7k jobs in the previous month. The net effect was that the Australian job market created 34.7k jobs in August beating expectations of 10k jobs.
The participation rate in the jobs market increased to 66.2% beating the expectation of 66.1% while the unemployment rate remained steady at 5.3%.
Meanwhile, in the US, existing home sales came in at 5.49M beating the expectation of 5.37m. This represented a change of 1.3% for the month while analysts were expecting -0.4%.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair appears to be trading under strong bearish pressure in the short-term. The pair is looking to break to the oversold levels of the RSI indicator in the 60-min chart and this could be an opportunity for the bulls to strike.
Therefore, the bulls will be targeting short-term profits at around 0.6782, 0.6795 or higher at 0.6809. On the other hand, the bears will be targeting to pounce at around 0.6749, 0.6731 or lower at 0.6715.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair also appears to be experiencing a bearish bias, albeit modest. It has recently pulled back off the 100-day moving average while the 200-day counterpart hangs slightly higher.
This supports the case of a long-term bearish bias, which the bears will be looking to pounce on. They will be targeting profits at around 0.6686 and 0.6600 while the bulls will hope for an immediate rebound towards 0.6822, 0.6889 or higher at 0.7030.
In summary, the AUD/USD currency pair appears to be trading under intense bearish pressure in the short-term but in the long-term, the bulls will have a say as they eye periodic rebounds.