Economists believe that the recovery of the Australian labor market stalled in September. In their view, a 25 bps RBA rate hike is the most likely scenario in November, while a weakening labor market raises the possibility of a pause in the RBA rate hike cycle later in the year.
An important factor here will be inflation data for the 3rd quarter, which will be published on Wednesday (for more details, see Key economic events of the week 10/24/2022 – 10/30/2022).
Given the strong bearish momentum and the overall downward momentum in AUD/USD, further declines can be expected. More conservative AUD/USD sellers are likely to decide to wait for today’s intraday low at 0.6273 to be broken.
In an alternative scenario, after the breakdown of the resistance level of 0.6308, AUD/USD will resume corrective growth.
Support levels: 0.6273, 0.6200, 0.6170, 0.5975, 0.5665, 0.5510
Resistance levels: 0.6308, 0.6400, 0.6415, 0.6455, 0.6477, 0.6500, 0.6545
