AUDUSD selling gathers traction following poor AUD Job data

AUDUSD Price Analysis – August 16

AUDUSD pair continued its gradual intraday decline during the early European session, refreshing daily lows around 0.7308. Domestic data revealed that the number of employed persons declined more than expected in August, weighing on the Australian dollar. Governor Lowe went out of his way to argue against market pricing for a higher cash rate in late 2022 and 2023, indicating that the RBA was not in the mood to strengthen the AUD.

Key Levels
Resistance Levels: 0.7557, 0.7450, 0.7350
Support Levels: 0.7289, 0.7150, 0.7050
AUDUSD Long term Trend: Ranging
At the start of the European session, the AUDUSD plunged towards the support level of 0.7300. A breakdown is a sell signal, with a target of sub-0.7300 and possibly as far as solid support at 0.7220 for short-term profit-taking. In all likelihood, the AUDUSD exchange rate will continue to fall over the next trading session.

The 0.7200 level could be a potential target for bears. While the retracement from the 0.8000 level is still happening, there isn’t enough data to confirm a positive trend reversal at this time. That is, it could just represent a reversal of the long-term consolidation tendency. On the plus side, a bullish comeback above the 0.7478 marks will restore buyer confidence.
AUDUSD Short term Trend: Ranging
The momentum indicators on the 4-hour time frame, on the other hand, are currently pointing to a continued sell-off in the near term. The RSI is reverting to its oversold level of 30, while the 4-hour moving averages 5 and 13 are dropping and rising above price while remaining in the negative zone.

However, if the market closes over the small resistance at 0.7350 in the next sessions, it might stoke buying interest and confirm further rises towards the 0.7600 hurdles, which are the June 2021 highs. If there is a strong rebound, the 0.8000 barriers, which were identified as resistance in February 2021, could be the next target.

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