(MENAFN– Daily Forex) Trading Outlook
Bearish View
- Sell AUD/USD, take-profit at 0.6585.
- Set stop-loss at 0.6755.
- Timeline: 1-2 days.
Bullish View
- Buy AUD/USD, take-profit at 0.6750.
- Set stop-loss at 0.6585.
The AUD/USD pair is trending down, hitting a low of 0.6665, the lowest since September 11, down over 4% from its peak this year.
This decline followed recent Australian job data, which showed the unemployment rate at 4.2% with over 40k jobs created in September.
The upcoming inflation data will influence the Reserve Bank of Australia’s (RBA) decisions on November 5. Analysts predict the RBA will maintain current interest rates but may reduce them in December.
Australian bond yields have increased, with the ten-year yield rising from 3.76% to 4.32%, and the five-year yield from 3.38% to 3.9%.
Next, the AUD/USD will respond to US economic data, including core retail sales expected at 0.1% and a rise in headline sales to 0.3% in September.
Additional data, like the Philadelphia Fed manufacturing index, is anticipated, potentially showing growth from 1.7 in September to 4.2.
Expect stronger numbers to suggest a more aggressive Federal Reserve stance.
Technical analysis shows AUD/USD remains below the 50-day and 100-day Weighted Moving Averages, with sellers targeting the next support at 0.6600.
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