The AUD bears remain unstoppable, as the selling pressure pushes AUDUSD to hit fresh 20-Month lows in the European session. What is next for the pair? Find out in the following analysis.
7 September, OctaFX – The US dollar is little moved against its top global peers as traders wait for official employment data from the government. Traders expect the non-farm payrolls for August to be 191K. This will be higher than the disappointing 157K released a month ago.
AUDUSD Hits Fresh 20-Month Lows
The Aussie extended its Asian sell-off and went on to refresh twenty-month lows at 0.7137 last hour amid a renewed risk-aversion wave, as the European traders hit their desks and reacted to negatively to the overnight comments from the US President Trump on Japan.
However, further downside appears cushioned amid fresh broad-based US dollar selling and a minor-recovery seen in copper prices, as all eyes turn to the US labor market report later on Friday at 12:30 GMT for the next direction on the spot.
Analysts at Nomura wrote:
We expect a strong nonfarm payroll employment increase of 220k in August, partly driven by a reversal of idiosyncratic softness in certain industries in July. With a modest downward bias from calendar effects, we expect average hourly earnings (AHE) to increase 0.18% m-om, corresponding to 2.69% on a 12-month basis.”
AUDUSD Technical Levels
Jason Sen at DayTradeIdeas.com, notes:
“AUDUSD holding support at 7152/42 targets first resistance at 7195/7205, perhaps as far as strong resistance at 7225/29. Watch for a high for the day. Shorts need stops above 7250. First support at 7152/42 in oversold conditions.
I think we will start a sideways trend, perhaps to build a base before a recovery. Longs need stops below 7125. A break lower, however, targets 7115 & 7100.”
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