#AUDUSD @ 0.62942 extends its downside following RBA Governor Bullock’s speech.

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• AUD/USD extends its downside following RBA Governor Bullock’s speech.

The pair currently trades last at 0.62942.

The previous day high was 0.6379 while the previous day low was 0.6333. The daily 38.2% Fib levels comes at 0.6361, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.635, expected to provide resistance.

The AUD/USD pair attracts some sellers during the early Asian trading hours on Thursday. The pair breaks below the 0.6300 mark and currently trades around 0.6290, losing 0.28% for the day. The risk-off sentiment and a firmer US Dollar (USD) exert pressure on the pair.

Early Thursday, Reserve Bank of Australia (RBA) Governor Michele Bullock stated that CPI was a little higher than expected, but it was about where we thought it would come. Bullock added that the central bank aims to slow the economy without tipping it into recession.

The Australian Consumer Price Index (CPI) arrives at 1.2% QoQ in the third quarter of 2023 versus the 0.8% increase seen in the second quarter. The market consensus was for a rise of 1.1% in the reported period. On an annual basis, CPI inflation rose to 5.4% in Q3 2023, against the expected 5.3% increase and the previous print of 6.0%.

On the US Dollar front, September’s New Home Sales in the US increased to 759,000 MoM, above the market consensus of 680,000. The upside of the Greenback is bolstered by the higher US Treasury yields and a risk-off mood. Meanwhile, the US Treasury bond yields edge higher, with the 10-Y US Treasury yield surging to 4.96%.

Additionally, geopolitical risks will continue to boost safe-haven flows. Early Thursday, Prime Minister Benjamin Netanyahu said Israel is preparing for a ground assault in Gaza and the timing of the invasion will be reached by consensus.

Moving on, the Australian Export and Imports Price Index for the third quarter (Q3) is scheduled to be released in the Asian session on Thursday. Market participants will closely monitor the first Q3 Gross Domestic Product estimate on Thursday, which is expected to show a 4.2% expansion. Also, Initial Jobless Claims and Durable Goods Orders will be released.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6291 at the time of writing. Pair opened at 0.6355 and is trading with a change of -1.01 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.636, 50 SMA 0.6401, 100 SMA @ 0.6547 and 200 SMA @ 0.6648.

The previous day high was 0.6379 while the previous day low was 0.6333. The daily 38.2% Fib levels comes at 0.6361, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.635, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6332, 0.6309, 0.6286
• Pivot resistance is noted at 0.6378, 0.6402, 0.6425

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