AUD/USD Shows Resilience Despite Four-Day Selling Pressure; Technical Support Emerges Ahead of US Jobs Report

AUD/USD struggles for the fourth consecutive session amid mixed headwinds, but chart support may limit further declines. The AUD/USD pair continues its downward trajectory, hovering near 0.6630 and posting losses of approximately 0.10% during early Asia-Pacific trading. Multiple factors are conspiring against the Australian Dollar, starting with last week’s tepid employment figures from Australia and Monday’s disappointing economic readings from China, which intensified concerns about the world’s second-largest economy. These developments coincide with a risk-off sentiment permeating global equity markets, creating a challenging environment for the commodity-linked AUD.

Policy Divergence Provides a Stabilizing Anchor

Yet the selling momentum encounters meaningful resistance from the diverging monetary policy outlook between Australia and the United States. Reserve Bank of Australia Governor Michele Bullock signaled last week that additional rate cuts appear unnecessary for now, with the Board even contemplating what measures might be required if tightening becomes necessary. Simultaneously, the US Dollar remains under pressure following the Federal Reserve’s growing acceptance of further rate reductions. The USD Index—measuring the Greenback’s strength against a basket of major currencies—trades near its lowest point since early October, supported by market expectations for more Fed cuts and speculation surrounding a potentially dovish successor to Fed Chair Jerome Powell.

Market Awaiting Key Economic Data

Traders are adopting a cautious stance heading into the week’s critical economic calendar. The delayed October US Nonfarm Payrolls report represents a key catalyst that could reshape current market positioning. Until this data arrives, participants appear reluctant to establish aggressive positions, preferring instead to assess the employment figures before committing significant capital. This wait-and-see mentality is capping both upside and downside momentum in the AUD/USD pair.

Technical Perspective: Validating the Uptrend

From a technical standpoint, the current three-week rally in AUD/USD has sustained despite mounting pressure, suggesting underlying support levels are holding firm. A confirmed breakdown below current support zones would be required to invalidate the recent uptrend and signal further depreciation. Current price action suggests that the downside remains contained, at least until the NFP release provides fresh directional guidance.