AUD/USD Rebounds After Weak US Jobs Data but Faces Downward Pressure
The AUD/USD pair experienced significant volatility last week, reaching its lowest level since July before stabilizing at 0.6953. This movement followed a series of mixed economic data releases from both the US and Australia. The Reserve Bank of Australia (RBA) raised interest rates by 0.25%, the highest level in 15 years, to combat inflation. Despite strong inflation data in Australia, the AUD/USD pair dropped as investors focused on the US dollar's strength.
The US economic reports showed a softer inflation rate and weaker job creation, with only 29k jobs added in September compared to the expected 85k. The unemployment rate also rose to 4.2%. These figures suggest the Federal Reserve may keep interest rates unchanged for the rest of the year, unless economic conditions change.
Technical analysis indicates that the AUD/USD pair has been in a downward trend, falling below key indicators like the 50-day Exponential Moving Average (EMA) and the Supertrend indicator. A brief rebound to 0.7050 is possible before the pair resumes its downward trend. The upcoming Federal Reserve minutes on Wednesday could provide further insights into future interest rate decisions.