- AUDUSD pair broke an important support area and looks set for more losses in the near term.
- Earlier today, the Australian trade balance was published by the Australian Bureau of Statistics, which registered a trade deficit of -2,906M in November 2015.
- Moreover, the Australian Building Permits posted a decline of 12.7% in November 2015.
- US Initial Jobless Claims released by the US Department of Labor decreased from 287K to 277K.
The AUDUSD pair failed to hold gains this week and traded lower. There was a crucial support trend line on the daily chart of AUDUSD, which was broken by sellers to ignite a downside move. It looks like the pair may head towards the 1.618 Fibonacci of the last move from the 0.7099 low to 0.7324 high.
The worst part is that the pair has settled below the 50, 100 and 200-day simple moving average. So, it is very likely that the AUDUSD pair may trade lower.
The daily RSI is heading towards the extreme oversold area, which buyers need to keep an eye on.
US Initial Jobless Claims
The US Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance was released by the US Department of Labor. The forecast was lined up for a decline from the last reading of 287K to 275K. However, the decline was of 10K, as the jobless claims fell to 277K.
The report stated that “advance seasonally adjusted insured unemployment rate was 1.6 percent for the week ending December 26, unchanged from the previous week’s unrevised rate”.
Overall, there was a decline in the Jobless claims, which can help the US Dollar, and in turn ignite more losses in the AUDUSD pair moving ahead.