• the Australian dollar continued to fall under pressure last week

• focus this week on whether the Australian employment report can reverse the decline of the Australian dollar

• aud / USD technical bearish

The Australian dollar has widened its decline against the US dollar over the past week. Although the Bank of Australia (RBA) took a tougher stance at the beginning of this month, the prevailing risk aversion in financial markets pressured the Australian dollar.

This week, traders should pay close attention to Australia's employment report.

The market expects that the price of Australia will add 30000 jobs in April, and the unemployment rate is also expected to drop from 4.0% to 3.9%, which will be less than 4% for the first time since records began, which may trigger market expectations for the Bank of Australia to be more hawkish, thus boosting the Australian dollar. However, the AUD / USD technical side still tends to be bearish.

AUD / USD Technology Outlook: bearish

AUD / USD confirmed to fall below the key support range of 0.6968-0.7000 last week, and once tested the range of 0.6777-0.6832, which was the low point in June 2020. If it fell below the latter, it may further test the low point in 2020.

However, RSI seems to be showing signs of deviation, suggesting that the downward action of the exchange rate can be slowing down, and even there may be a recovery. If aud / USD rebounds, the biggest test at the top is the downward trend line since the high in March. However, before testing the trend line, we need to break through the resistance range of 0.6968-0.7000 for the transformation of the support range.

On the contrary, if the AUD / USD continues to decline, the lower target looks at the 100% and 123.6% Fibo extension levels of 0.6635 and 0.6486.

AUD / USD Ig customer Sentiment Report

Ig customer sentiment report shows that 76% of retail investors are net bullish on aud / USD. As a negative indicator, retail investors' net bullishness suggests that the exchange rate may continue to fall.

In addition, the net long position increased by 7.34% and 19.98% respectively compared with yesterday and last week, indicating that the bearish signal is stronger.