• US Dollar remains steady despite all Fed talk.
  • Aussie remains under pressure after weak jobs data from Australia.

The AUD/USD pair keep falling after the beginning of the American session and printed a fresh four-week low at 0.6768. As of writing trades at 0.6775, about to post the fifth consecutive daily decline.

Among majors, the Aussie is the worst performer affected by Australian economic data. The employment report for October showed an unexpected contraction in jobs of 19K while the unemployment rate rose from 5.2% to 5.3%. “All up, we still don't think the RBA (Reserva Bank of Australia) cuts in December. There is a lot of volatility in these numbers, so it won't be enough for the Bank to act. Still, the negative prints across the board do suggest the RBA will need to deliver another cut, we think in February 20”, explained analysts at TD Securities.

Also, the US Dollar continues to trade stronger against commodity currencies, adding more pressure to the AUD/USD amid uncertainty around the US/China trade deal. Today several FOMC officials, including Chairman Powell spoke in public having no relevant impact.

From a technical perspective, AUD/USD continues to move with a clear bearish bias showing oversold conditions in the short-term but so far no sign of a consolidation. The next support area might be seen at 0.6760, followed by 0.6740/45. On the upside, the immediate resistance is located at 0.6795 and above at 0.6810.

Fed's Powell is testifying again today at the House Budget Committee and here are some of his key comments listed below:

The Fed moves in repo market have no effect on the economy. He also said the Fed sees less room for rates cuts in the low rate environment.

Investment in infrastructure could be very helpful for the US economy and well-financed infrastructure can contribute to increasing productivity in the US economy.

The Fed is doing a lot of forensic work to understand liquidity issues in repo market .

He also said there is nothing in the economy that is booming this is a sustainable picture.

The October monthly jobs was "very solid",

  • DXY is trading in a very tight range in Thursday’s New York session.
  • The level to beat for bulls is the 98.40 resistance level.

DXY daily chart

DXY (US Dollar Index) is trading in a bull trend above the main daily simple moving averages (DMAs). This Thursday the Greenback is once again challenging the 98.40 level while trading just above the 50 DMA.

DXY 4-hour chart

DXY keeps pressuring the 98.40 resistance. If the sellers give up and the market breaks above the 98.40 resistance on a daily basis, there is scope for further upside towards the 98.65 and the 99.26 resistances.

DXY 30-minute chart

DXY is trading above its main SMAs, suggesting a bullish bias in the short term. Support is seen at the 98.30, 98.20 and 98.10 levels.

Additional key levels

  • Price looks to be heading toward the USD 58 per barrel psychological resistance.
  • The internal trendline and 61.8% Fibonacci level match slighty higher up.

Spot WTI Daily Chart

WTI has been on the rise today and trades 0.40% higher on the session.

This is due to the OPEC report published earlier.

Over the last few days, the price was not able to break USD 57.50 per barrel as price bounced off it eight times.

The chart below looks slightly messy but it does show there is some traffic in the way of a move higher.

The channel in red was created from an internal trendline which originated from the low back in August.

It is well respected as it was used as support and resistance six times.

Now above the price at the moment, there is also a 61.8% Fibonacci level and the price could meet the internal trendline and Fib level at the same time.

WTI analysis

Additional Levels