The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Tuesday, decreasing the price of AUDUSD to less than 0.7100 following some key economic releases. The technical bias shall remain bearish because of a higher low in the recent upside move.
AUD/USD Technical Analysis
As of this writing, the pair is being traded around 0.7066. On the downside, a support can be noted around 0.7013 the trend line support ahead of 0.6900 the psychological number and then 0.6825, the major horizontal support level as demonstrated in the given below daily chart.
On the upside, a hurdle can be noted near 0.7225, an immediate trendline resistance level ahead of 0.7298, the 23.6% Fib level resistance and then 0.7458, the key horizontal resistance in the given above chart. The technical bias shall remain bearish as long as the 0.7298 resistance area is intact.
US Nonfarm Payrolls
Non-farm payrolls in the United States increased by 201 thousand in August of 2018, as compared to 147 thousand in during the month before and above market expectations of 191 thousand. Employment increased in professional and business services, healthcare, wholesale trade, transportation and warehousing, and mining.
Non-Farm Payrolls in the United States averaged 126.88 Thousand from 1939 until 2018, reaching an all-time high of 1115 Thousand in September of 1983 and a record low of -834 Thousand in October of 1949. Generally speaking, an increasing number in employment rate shows a positive or bullish trend for the US Dollar (USD) and vice versa.
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.