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The AUDUSD is Consolidating Around 0.67

11/18/2022 11:22 AM

The Australian dollar shows weak growth, recovering from a rather active decline the day before, which led to a short-term update of local lows from November 11.

The AUD/USD pair is testing 0.6700 for a breakout, taking a lead from the results of yesterday's publication of the October report on the Australian labor market, which reflected a noticeable increase in Employment Change by 32.2 thousand after rising by 0.9 thousand in September, while analysts expected an increase by 15.0 thousand. This was facilitated by an increase in the level of Full-Time Employment (47.1 thousand from 10.9 thousand in September), while the Part-Time Employment again decreased by 14.9 thousand after falling by 12.4 thousand a month earlier. The Unemployment Rate corrected from 3.5% to 3.4% in October, while experts expected 3.6%. Such labor market statistics suggest that the Reserve Bank of Australia (RBA) is likely to maintain a policy of high interest rates for some time to come. However, the rate of increase in the indicator is gradually corrected against the backdrop of a slowdown in inflation.

Meanwhile, the Australian Securities and Investments Commission (ASIC) has suspended until May 15 the financial services license for US-based cryptocurrency exchange FTX, which filed for voluntary bankruptcy last week amid reports of misuse of customer funds. The platform offered users a full range of exchange and over-the-counter products, as well as derivatives.

Bollinger Bands on the daily chart are showing steady growth: the price range is expanding, clearing the way for the “bulls” to new local highs. MACD is trying to reverse into a downward plane, forming a new sell signal (the histogram tends to consolidate below the signal line). The Stochastic is rapidly retreating from its highs, signaling that the Australian dollar is overbought in the ultra-short term.

Resistance levels: 0.6750, 0.6800, 0.6853, 0.6900. | Support levels: 0.6650, 0.6572, 0.6520, 0.6450.

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