FxWirePro: AUD/USD slumps lower to hit fresh 13-month low, USD strength ahead of NFP prompts fresh selling
Chart - Courtesy Trading View
USD buying ahead of key US NFP report prompted fresh selling around AUD/USD on Friday.
US NFP report is expected to show that the economy added 550K new jobs in November and the unemployment rate is forecast to dip to 4.5% from 4.6%.
Markets are convinced that the Fed would adopt a more aggressive policy response to contain stubbornly high inflation.
Fed Chair Jerome Powell's hawkish comments that 'it's time to retire the word transitory and consider wrapping up the taper of our asset purchases, perhaps a few months sooner', added to USD strength.
Further, the disappointing release of Chinese Caixin Services PMI undermined antipodean currencies.
- On verge of major trendline breach
- Momentum is strongly bearish
- Volatility is high and rising
- GMMA shows strong bearish bias on daily and weekly charts
- The pair is extending break below 200-week MA
Major Support Levels: 0.7028 (Lower BB), 0.6991 (Nov 2020 low)
Major Resistance Levels: 0.7102 (5-DMA), 0.7152 (200H MA)
Summary: AUD/USD trades with a strong bearish bias. Scope for dip below 0.70 handle.