AUD/USD faces bearish pressure near 0.6931 as US tech stocks enter correction territory and investors await Friday's critical Nonfarm Payrolls report.
AUD fell over 1% on November 5 to 0.6931 after peaking at 0.7024, decisively clearing 0.7000 and trading at the bottom of the 0.6900-0.7030 range, which raises odds of bearish continuation. Risk-off sentiment from the NASDAQ 100's 5.52% plunge and strong US jobs data (jobless claims 189K vs 196K forecast) weigh on the pair. A neutral Australian Friday calendar and RBA hike expectations priced out until June 22, 2027 remove local support.
Risk appetite soured as US tech stocks sold off heavily, while solid US jobs data and hawkish Fed commentary strengthened the US Dollar, pushing AUD/USD from a peak of 0.7024 down to around 0.6931.
Friday's US Nonfarm Payrolls report is the key event. A close below the 0.6923 trend-line support would keep the bearish structure intact, while a daily close above roughly 0.7050 would be needed to ease it.
The NASDAQ 100 collapsed 5.52% on November 5, dropping into correction territory, driven by growing speculation that Democrats in control of the US Congress may push for AI regulation and a potential data-centre slowdown. The risk-off mood also spilled into FX, hurting the risk-sensitive Australian Dollar. Continued regulatory speculation threatens further downside.
The index dropped 5.52% in a single session as investors grew worried about potential AI regulation from the Democrat-controlled Congress and a possible slowdown in data-centre spending.
Initial Jobless Claims fell to 189K, below the 196K forecast, and Fed officials Hammack and Barkin signalled a gradual approach with inflation still too high, lending the Dollar a lifeline. However, markets scaled back December hike odds to 66% from 82%, which tempers the bullish case ahead of Friday's Nonfarm Payrolls.
Strong jobs data and hawkish Fed remarks supported the Dollar, but traders trimmed the chance of a December hike to 66% from 82%, so the picture is mixed ahead of Friday's Nonfarm Payrolls.
The Australian Dollar fell over 1% to 0.6931 as a 5.52% collapse in the NASDAQ 100 fueled a broad risk-off environment. Strong US jobless claims of 189K and hawkish commentary from Fed officials Hammack and Barkin further bolstered the US Dollar, leaving the AUD/USD pair at the bottom of its recent trading range.
Risk appetite soured as US tech stocks sold off heavily, while solid US jobs data and hawkish Fed commentary strengthened the US Dollar, pushing AUD/USD from a peak of 0.7024 down to around 0.6931.
The index dropped 5.52% in a single session as investors grew worried about potential AI regulation from the Democrat-controlled Congress and a possible slowdown in data-centre spending.