- U.S. job vacancies fell, and private firms hired fewer people in May.
- The US services sector remained strong despite high borrowing costs.
- Non-farm payrolls performed better than expected in the labor market.
The weekly AUD/USD forecast is bearish as an upbeat US jobs report raises uncertainty over the prospect of a Fed rate cut.
AUD/USD Ups and Downs
The AUD/USD pair had a bearish week as the greenback ended strongly on upbeat employment data. However, the Aussie came out on top as the week began on heightened expectations of a rate cut by the Fed. Most reports this week point to a slowdown in the US economy. Business activity in the manufacturing sector declined, job vacancies fell, and private firms employed fewer people in May.
–Are you interested in learning more about Ethereum price prediction? Check out our detailed guide-
However, the services sector remained strong despite high borrowing costs. In Australia, GDP data revealed weaker-than-expected growth but had little impact on expectations of a rate cut. The primary catalyst came late in the week when non-farm payrolls performed better than expected in the labor market. This sent the dollar higher as bets on a rate cut fell.
Next week’s key events for AUD/USD
Next week, investors will focus on US inflation data and the FOMC policy meeting. Meanwhile, Australia will release its employment data, which will weigh on the prospects for an RBA rate cut. The latest CPI report showed US inflation easing, giving policymakers and traders confidence that the downward trend is intact.
However, it has risen and fallen since then, with some reports showing continued economic strength. Another bad report would raise expectations for a US Fed rate cut. However, if inflation remains stubborn, policymakers will maintain a hawkish tone at the FOMC meeting. That would mean a drop in rate cut bets that would strengthen the dollar against the Aussie.
AUD/USD Weekly Technical Forecast: The market is turning bearish with price below the 22-SMA
On the technical side, the AUD/USD price broke below the 22-SMA, confirming a change in bearish sentiment. The move comes after the bulls were retested and failed to break the 0.6700 resistance level. Furthermore, this change in sentiment can be seen in the RSI, which has crossed below 50 into bearish territory.
–Are you interested in learning more about Crypto Signals Telegram Groups? Check out our detailed guide-
As a result, the price is likely to retest the 0.6501 support level. If the bears are ready to start a new downtrend, the decline will continue below the 0.6401 support level to make lower highs and lows.
Do you want to trade Forex now? Invest in eToro!
68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing money.
