Due to the continued growth of the US dollar, the AUD/USD pair is correcting, trading around 0.6899.
According to the Australian Bureau of Statistics, the seasonally adjusted unemployment rate fell again. It stood at 3.4% in July, while employment decreased by 41.0K people and the number of unemployed by 20.0K, indicating an acute labor shortage in the national labor market. However, the number of unemployed amounted to 474.0K, less than 480.0K vacancies. Tomorrow, investors are waiting for the publication of data on business activity indices in the leading sectors of the economy, and there are no signals yet that the decline in indicators will stop. Thus, the value for the service sector may fall below 50.9 points, and for the manufacturing sector – less below 56.2 points.
Another reason for the downward dynamics of the AUD/USD quotes is the growth of the US dollar, which overcame the key mark of 108.000 in the USD Index yesterday, reacting to the first signs of a change in the trend in the US housing market. The fact is that rates on 30-year mortgage loans, which have been continuously growing since the beginning of the year, corrected in August to 5.13% from 5.22% a month earlier amid a slowdown in inflation from 9.1% to 8.5%, which, in turn, may have a positive impact on the statistics on the housing market, which is experiencing a demand crisis, being at its lows since May 2020.
On the global chart of the asset, the trading instrument is correcting within the local downward channel, falling towards the support level. Technical indicators are preparing for a new reversal and have almost given a new sell signal: fast EMAs on the Alligator indicator are preparing to cross the signal line downwards, and the AO oscillator histogram has come close to the transition level.
Resistance levels: 0.6968, 0.7122. | Support levels: 0.6853, 0.6711.