The AUDUSD pair fell to its lowest levels in over a week, after mixed data from the labour market caused uncertainty regarding the path of further interest rate increases. The unemployment rate dropped to a 48-year low of 3.4% in July, on the other hand the report also showed a surprise 40,900 drop in net employment for the first decline since October last year. RBA was expected to raise rates by another 50 bp next month, but softening data prompted markets to dial back such expectations. From a technical point of view, the AUDUSD pair pulled back sharply after an unsuccessful attempt to break above 200 SMA (red line) and is currently testing major support at 0.6900, which is marked with previous price reactions and 50 SMA (green line). Should break lower occur, downward move may accelerate towards recent lows at 0.6717.
AUDUSD, D1 interval. Source: xStation5
Daily summary: Weak US data drags markets down, precious metals under pressure again!
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