FxNews—On Wednesday, the Australian dollar remained steady at about $0.666, near its lowest point in six weeks. This comes as the U.S. dollar and Treasury yields saw gains due to strong economic reports and concerns over the U.S. budget deficit. While the market anticipates the Federal Reserve will reduce interest rates in November and December, expectations for additional rate cuts next year have decreased.
Australia’s Job Growth Surges in September
In Australia, the Deputy Governor of the Reserve Bank, Andrew Hauser, mentioned that the recent strong job growth was unexpectedly good. He also noted that the central bank is prepared to adjust its policies based on new economic data.
Recently released figures revealed that Australia’s economy gained 64,100 jobs in September, significantly surpassing the expected 25,000. The unemployment rate is 4.1%. Investors are eager to see the upcoming PMI reports for more insights.
- Also read: EUR/USD Targets $1.072 Amid ECB Rate Cuts
AUDUSD Technical Analysis – 23-October-2024
The Australian dollar trades in a bear market against the Greenback, nearing the September 11 low, the $0.662 mark. Moreover, the Stochastic Oscillator and RSI 14 have room to become oversold, meaning the AUD/USD pair has room to resume the downtrend. Additionally, the Awesome Oscillator bars are red, below the signal line, indicating the bear market prevails.
On the contrary, the 4-hour chart formed an ABCD harmonic pattern, which can be interpreted as a trend reversal signal. Therefore, it is likely that the Australian dollar will erase some of its losses against the U.S. dollar from this point and aim for the higher resistance areas.
Overall, the technical indicators suggest the primary trend is bearish, but the AUD/USD pair can potentially consolidate near upper resistance areas.
AUDUSD Forecast – 23-October-2024
The immediate support is at $0.662. If bears (sellers) close below this mark, the downtrend will likely resume. The next bearish target in this scenario could be the August 15 low at $0.656.
Please note that the bearish outlook should be invalidated if the AUD/USD price exceeds the $0.669 resistance, the October 22 high, in conjunction with the 50-period simple moving average.
AUDUSD Bullish Scenario
If bulls (buyers) close and stabilize above the $0.669 resistance, the AUD/USD price could target the $0.672 mark, followed by the $0.676 resistance, backed by the 100-period simple moving average.
AUDUSD Support and Resistance Levels – 23-October-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: 0.662 / 0.656
- Resistance: 0.669 / 0.672 / 0.676
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
