FxWirePro: AUD/USD struggles to extend previous session's gains, risk-off sentiment lifts US dollar's safe-haven demand

AUD/USD chart - Trading View 

AUD/USD was trading 0.20% lower on the day at 0.7211 at around 06:10 GMT, outlook bearish.

Risk-off mood across markets helps the US dollar find its feet while weighing on the antipodeans. 

Further Fed’s tapering expectations and optimism after concerns about US government shutdown fades away buoys US dollar.

Data released overnight showed US Initial Jobless Claims increased for the third consecutive week, denting outlook for the Nonfarm Payrolls report in the following week.

US Initial Jobless Claims increased to 362K, more than 335K expected by analysts. Fed chair Jerome Powell has earlier this week said the U.S. economy is still far from achieving maximum employment, a key criteria for rate hikes.

Technical Analysis:

AUD/USD price action has slipped below 200-week EMA opening downside. Price action is below cloud and major moving averages are biased lower. Momentum is strongly bearish and volatility is high. 

Major Support and Resistance Levels: 

Support - 0.7105 (Yearly low), Resistance - 0.7270 (21-EMA) 

Summary: AUD/USD trades with a bearish bias. Scope for re-test of yearly lows at 0.7105.