AUD/USD faces downward pressure near 0.6860 following strong US employment figures and hawkish Fed sentiment, with traders now awaiting China's upcoming CPI inflation report.
October US Nonfarm Payrolls came in at 165,000 versus 65,000 expected, with unemployment falling to 4.1%, lifting the odds of a December Fed hike to 79.6% and pushing hawkish Fed sentiment higher (FXS index 143.10). Combined with RBA credibility worries after Hauser's warning, spot broke below 0.69 for the first time since early July and trades near 0.6860. Technicals below all key moving averages reinforce the bearish bias, though RSI near 33 hints at oversold conditions.
The Australian Dollar trades near 0.6860 as robust US labor data fuels expectations for further Federal Reserve tightening. October Nonfarm Payrolls rose by 165,000, pushing the probability of a December rate hike to 79.6% and weighing on the pair as it breaks below key technical support levels.
Immediate support is seen at 0.6865 and resistance at 0.6875 (lower Bollinger Band), with further hurdles at the Bollinger midline 0.6985, the 100-day SMA near 0.7025, and 0.7080-0.7090.