Home AUD/USD Forecast: Looking at 0.7000 amid Risk-off, Eying US NFP
AUD/USD Daily Outlooks

AUD/USD Forecast: Looking at 0.7000 amid Risk-off, Eying US NFP

  • AUD/USD is falling along with S&P 500 futures as risk appetite wanes.
  • Omicron’s Covid troubles are escalating, disappointing Caixin Services’ China PMI.
  • The focus shifts to the US NFP as the Aussie rejects early calls from the RBA for a rate hike.

The AUD/USD price forecast remains subdued as the US dollar gains traction amid deteriorated risk sentiment ahead of US NFP. In the midst of prevailing risks in the market, the AUD/USD pair is consolidating around 0.7700, which is an annual low.

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The sentiment in Asia fell this Friday after investors reacted negatively to news that a new strain of Omicron-Covid had been found in the United States and that new cases had been reported in Hawaii, New York, and Los Angeles. A decrease in risk aversion is indicated by the decline in S&P 500 futures.

There was another outbreak of fighting between the US and China as Didi Global Inc. prepared for the US stock market, aggravating the pain of the high-yielding Australian dollar.

In November, the Chinese Caixin Services PMI increased to 52.1 from 53.8, pleased Aussie bears.

Trade problems between the US and China are back in the spotlight after the Chinese ambassador to the US called for tariffs to be lifted on Chinese goods.

US payrolls for non-agricultural workers, expected to increase the Fed’s hawkish stance, are now being closely watched. However, as investors remain cautious, the Aussie ignores earlier calls for the RBA to raise rates.

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AUD/USD price technical forecast: More bears to come

 

The AUD/USD price is wobbling near the yearly lows, hinting for another bearish run. The average daily range for the pair so far is 57% which is quite higher than normal. So, we have a volatile day for the Aussie. Key SMAs on the 4-hour chart, along with volume, indicate more bearishness. We may see a test of 0.7000 area ahead of 0.6950 and 0.6900. On the upside, the pair may find hurdles around 0.7100, 0.7150, and 0.7200.

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Saqib Iqbal

Saqib Iqbal

Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis.