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AUD/USD falls below the 200-DMA, as bears eye 0.6500.
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S&P Global and ISM, revealed the US economy remains resilient, as business activity in the sector segment, gathers traction.
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RBA´s decision to hold rates, tumbled the AUD/USD below the 0.6600 figure, on a perceived dovish hold.
The AUD/USD prolonged its agony during the North American session after the Reserve Bank of Australia (RBA) kept interest rates unchanged, setting the Aussie Dollar (AUD) faith, spurring losses of more than 0.70%. The pair is trading at 0.6565 after diving from daily highs of 0.6621.
AUD/USD on the defensive after RBA’s decision, while US data boosts the Greenback
The greenback (USD) is on the offensive, while data from the United States (US) has caused volatility, as shown by the US Dollar Index (DXY), which settled around 103.83 from around 103.57 to 103.91 in the last hour.
A preliminary report from S&P Global revealed that services and composite PMIs rose as expected, later standing at 50.7, unchanged from October’s data. Recently, the Institute for Supply Management (ISM) revealed that non-manufacturing business activity rose to 52.7 from 51.8 a month earlier, beating estimates of 52.
At the same time, the US Department of Labor revealed that job openings fell to 8.733 million in October, below an estimate of 9.3 million and 600,000 less than the September figure.
Given that recently released data suggests the US economy remains resilient, traders turned to the release of employment data, with ADP employment changes on Wednesday and initial jobless claims on Thursday.
Following the data, traders saw a 137 basis point rate cut by the Federal Reserve (Fed) for next year.
In addition, the RBA decided to keep rates at 4.35%, in a decision seen as a dovish hold, according to market reactions, despite the RBA’s language that “a further tightening of monetary policy is needed…” they will act. The central bank said it did not have enough data, meaning the next meeting in February 2024 would be “live”.
AUD/USD Price Analysis: Technical outlook
AUD/USD daily chart shows bulls encountered solid resistance at a downslope supply trendline, which capped the last leg-up from October 26 lows, which witnessed the pair hitting a high of 0.6690. Since then, the pair lost a step as sellers dragged prices below the 0.6600 figure, eyeing a daily close below the 200-day moving average (DMA) at 0.6578. In that outcome, further downside is expected, with the following demand area at 0.6523, the November 6 high, and a previous resistance area that turned support.
AUD/USD
