AUDUSD Falls as Strong US Labor Data and Aussie Economic Weakness Weigh on Pair

The Australian Dollar (AUD) has continued to weaken against the US Dollar (USD), trading at $0.7078 as of current market data. This decline comes amid ongoing economic weakness in Australia, with recent flash PMI data showing manufacturing in contraction and subdued services growth.

Meanwhile, the USD remains resilient following a Federal Reserve rate hike and strong labor data, with policy divergence evident as the Reserve Bank of Australia is expected to stay tight on inflation concerns. This divergence has put pressure on the AUD, which trades below key short- and medium-term moving averages with bearish momentum signals.

A technical analysis based on proprietary models combining technical, on-chain, and expert data predicts that the AUD/USD pair will fluctuate between $0.7043 and $0.7113 over the next 2 to 3 days, with a high likelihood of further declines.