Why is the Australian dollar expected to weaken tomorrow (Thursday)?
The answer is because of the expectation of the Australian employment data report that will be published in the Asian session tomorrow with a forecast of gloomy figures.
Employment growth in Australia for June is forecast to slow by just 19,900 compared to the previous month's 39,700.
Meanwhile, the unemployment rate is expected to rise to 4.1% again after previously falling to 4.0%.
This forecast shows the gloomy development of the labor sector in Australia and this situation will prompt the Reserve Bank of Australia (RBA) to ease their monetary policy.
As for price movements, it can be seen that the chart of the AUD/USD currency pair since the beginning of the week shows a downward pattern, different from the positive increase last week.
Until yesterday's New York session, the price has made a decline reaching the level of 0.67150 as well as surpassing the lowest level traded last week at 0.67240.
The price drop situation occurred when investors were cautiously expecting a decline in the US dollar after a dovish signal was conveyed in Federal Reserve (Fed) Chairman Jerome Powell's speech regarding interest rate cuts.
The price on the AUD/USD chart shows a bearish movement that is below the Moving Average 50 (MA50) barrier line on the 1-hour time frame.
With the decline displayed, the price could possibly reach the 0.67000 zone which is seen as an important focus.
The reaction around the zone will give an indication of the future direction of whether the price will bounce back or fall lower.
If the upswing again sees the price break through the MA50 barrier, the target is for the price to head towards the 0.68000 highs.
That level is seen as a resistance zone that the price needs to break through if it wants to post a higher recent high after that.
See the picture of the price chart of the AUD/USD pair below for your technical analysis reference.
The chart displayed above uses the SaracenMarkets platform, open your trading account at SaracenMarkets today. – CLICK HERE – START TRADING NOW
