Australian dollar picked up slightly higher early in the morning against the U.S. dollar, following the release of the domestic employment report. The economy added 54,200 jobs in August while forecast suggested a 15,000 increase against July’s upwardly revised figure of 29,200. The unemployment rate remained stable at 5.6%.
AUD/USD – Technical Outlook
The Australian dollar is snapping the four losing sessions in a row versus the U.S. dollar after the release of the employment change overnight. During the last week, the AUD/USD pair had an aggressive run to the upside and managed to challenge the two-year-and-three-month high at 0.8125. Friday’s session ended near its opening level, creating a strong ‘gravestone doji’ signaling for a bearish movement.
However, on the weekly timeframe, the commodity currency successfully surpassed the 200-SMA. Going to the daily timeframe, the technical indicators seem to lose their strong momentum. The RSI indicator is pointing to the downside near the 70 level and the MACD oscillator is moving slightly higher. Our expectation is a correction to the downside until the 50-day SMA, near 0.7950.
Analysis by JFD Research