The Australian dollar has endured a mixed bag of events in the past 24-hours as investors slowly digest the latest minutes from the U.S. Federal Open Market Committee’s (FOMC) September meeting, which indicated the central bank could begin tapering its asset-purchase program as soon as mid-November.
Earlier, a “hotter-than-expected” inflation reading from the U.S. Consumer-Price Index was released and reported the U.S. inflation accelerated slightly in September, rising a seasonally adjusted 0.4% from the previous month and at a 5.4% annual rate.
Economists had forecast a 0.3% rise from August and a 5.3% annual rate.
Looking forward, the domestic labour market data released today by the Australian Bureau of Statistics (ABS) showed the level of employment fell by -138,000, missing the -108.5% forecast.
There were mixed results, with full-time employment increasing by 26,700 (or 0.3%) over the month while part-time employment declined by 164,700 (or 4.1%).
Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is back in overbought territory, while the Moving Average Convergence Divergence (MACD) holds a positive signal.
Viewing the resistance at US$0.7415, while this remains intact, a bearish assessment is viewed to US$0.7305. Reassess from there.
However, clearance of US$0.7415 would give a neutral view in the short term.