AUD – Australian Employment Data Reinforces RBA's Hawkish Stance, Stabilizing the Dollar

The latest Australian employment data provided strong support for the Reserve Bank of Australia (RBA) to maintain its current interest rate policy. Data showed a surge of 42,200 in employment in October, with the unemployment rate falling to 4.3%, reinforcing the RBA's basis for maintaining interest rates unchanged for longer than the market expected.

The Australian dollar against the US dollar still has a chance to test the trendline support formed over the past three months, currently at the 0.6450 level. The MACD indicator on the chart is breaking below the signal line, suggesting further downward pressure on the Australian dollar in the short term. The next key level is expected to be 0.64, which the Australian dollar has managed to hold above over the past three months; therefore, caution is advised if this level is breached, potentially leading to a larger downward wave. The subsequent major supporting levels are expected at 0.6370 and 0.6180. The resistance is forecasted at 0.6580 and 0.6630, with the next levels at 0.67 and 0.68.

Forecast range:

Resistance: 0.6580 - 0.6630 – 0.6700 – 0.6800
Support: 0.6450* - 0.6400* – 0.6370 – 0.6180

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10/11 RBA Deputy Governor Hauser: Australian Monetary Policy Faces Unusual Challenges
 

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