Audusd sees slight dip as US home sales rise and unemployment claims fall

AUDUSD Analysis

Performance after Thursday
Period	Pct	Chg	Momentum
Thursday	-0.07%	-4.7 Pips
Week to-date	-1.27%	-85 Pips
October	-4.09%	-283.2 Pips

Upcoming key events (London Time)

No major events for the day.

What happened lately

In the United States, new-home sales witnessed a positive turnaround in September with a 4.1% increase. This rebound comes after a decline of 4.7% reported in August, which has been subsequently revised to a smaller decline of 2.3%. The revised figures from the U.S. Department of Commerce indicate a healthier real estate market condition than initially anticipated for the previous month. Meanwhile, initial unemployment insurance claims in the U.S. also showed improvement. For the week ending 19 October, the claims decreased to 227,000 from the previously revised figure of 242,000, as reported by the Department of Labor. This reduction in claims suggests a strengthening labor market, potentially alleviating some concerns about the U.S. economic outlook.

The data reflecting growth in new home sales and a decline in unemployment claims in the United States could exert upward pressure on the U.S. dollar. A stronger economy often attracts investors, driving demand for the currency. On the other side of the currency pair, the Australian dollar might face some headwinds given its relative economic conditions and lack of major economic events. On Thursday, the AUDUSD pair observed a minor decline of 0.07% to 0.66318, possibly indicating a cautious sentiment in light of the positive U.S. economic data. With no significant events on the calendar to sway the market direction, the pair may continue to trade in a consolidation phase. As the U.S. economic indicators paint a robust picture, the upward pressure on the U.S. dollar could persist, potentially leading to further downside risks for the Australian dollar in the AUDUSD pair.

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What can we expect from AUDUSD today?

AUDUSD on Thursday dropped -0.07% to 0.66318. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for AUDUSD looks mixed as the pair is likely to consolidate above 0.66145 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.66613 or trades above daily pivot 0.66379. Break above could target R1 at 0.66552. While to the downside, we are looking at 0.66145 (S1) and daily low of 0.66206 as support levels. AUDUSD need to break on either side to indicate a short-term bias. A close below 0.66206 would indicate selling pressure.

For the week to-date, take note that AUDUSD is bearish as the pair posted lower by -1.27%.

Key levels to watch out:

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