AUD/USD Plunges to Weekly Lows After Australian Employment Data

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The AUD/USD currency pair on Friday plunged to trade at current weekly lows of about 0.7055 following the latest round of data. The currency pair has now dropped from an ascending channel formation in the 60-min chart.

The pair is pegged several levels below the 100-hour and the 200-hour SMA lines. Despite the latest decline, it remains a reasonable distance from the oversold levels of the 14-hour RSI.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair is trading at the back of a relatively busy period in both markets. On Thursday, the Australian employment data for September returned a seasonally-adjusted employment change of -29.5k jobs. This was positive compared to the expected change of -35k jobs. The unemployment rate for the month edged slightly higher to 6.9% from 6.8% in August. But this was also better than the expected rate of 7.1%. Earlier in the week, the Westpac Consumer Confidence for October outperformed the expected reading of 9.9% with a change of 11.9%.

In the US, the retail sales control group for September beat the expected change of 0.2% with a change of 1.4%. On the other hand, general retail sales beat the (MoM) expectation of 0.7% with 1.9% while retail sales ex-autos outshone 0.5% with 1.5% (MoM). The Michigan Consumer Sentiment Index for October beat 80.5 with 81.2. Earlier in the week, the US CPI ex-food and energy for September missed the expectation of 1.8% with 1.7% (YoY). It matched the (MoM) expectation of 0.2%.

AUD/USD Technical Analysis (the 60-min Chart)

Technically, the AUD/USD currency pair on Friday extended the current weekly declines towards 0.7050 after a positive round of US retail sales data. The currency pair appears to be under strong bearish pressure in the 60-min chart.

The bears will be looking to extend the current declines towards 0.7048 or lower to 0.7009. On the other hand, the bulls will target short-term rebound profits at around 0.7097 or higher at 0.7132.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be trading within a sharply descending channel off an ascending channel. This indicates an attempt by the bears to trigger a long-term reversal.

They will be targeting long-term profits at around 23.60% fib level at 0.6959 or lower at 0.6819. On the other hand, the bulls will target long-term profits at around 0.7207 or higher at 0.7316.

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