AUD/USD with a new bottom for the day after labor market data

The Australian dollar remained under pressure throughout the Asian session, falling by about 0.64% from its opening. The sell-off has intensified since Australia's labor market data came out. Employment change figures came in at +34.7 K vs. 15K, but unemployment reflected an increase of 5.3% from 5.2%.

The mixed data triggered sellers, but the price dropped after the CBA confirmed its prediction that the RBA would cut interest rates by 25 points in October, initially expecting it to happen in November.

The price managed to go below the 50-period moving and the zone at 38.2 Fibo, confirming the break from short-term range. Now we expect the price to reach the zone at 23.6 Fibo where we can possibly look for a rebound in the area around 50 periodic and 38.2 Fibo which will already be resisted. In the long run, we expect the AUD / USD to continue to fall in price as the market begins to appreciate the 25-point interest rate cut for October. In this scenario, we would expect the price to continue its decline again to the area at 0.66939.

Alternatively, the price could potentially go back above 0.68312 levels and test the above diagonal support again, which would give a new prerequisite for short or break up, ruining our bearish scenario.

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