Ella 
AUD/USD is attempting to recover towards 0.6681, but the outlook appears uncertain as the pair remains close to six-week lows. A stronger U.S. dollar and rising U.S. Treasury yields, driven by expectations that Donald Trump will win the upcoming U.S. presidential election, weighed heavily on the Australian dollar.
While markets continue to expect the Federal Reserve to cut interest rates in November and December, signs of stabilization in the U.S. economy further boosted the dollar. However, the market is lowering expectations for further easing of monetary policy next year.
On the domestic front, Australia’s recent labor market data has been positive. September data showed job creation increased by 641,000, well above expectations of 250,000. The unemployment rate held steady at 4.1%. Investors are now looking forward to upcoming PMI data, which may provide further insight into the health of the Australian economy.
Although domestic indicators are positive, China’s influence remains a key factor in the Australian dollar given that it is Australia’s main trading partner. The market believes that China’s recent stimulus measures are not enough, which gives the Australian dollar more challenges.
AUD/USD is declining towards the target level of 0.6636. Once this is achieved, the market may form a new consolidation range at these lows. In the event of an upward breakout, a pullback to 0.6790 may be considered. The MACD indicator supports this scenario, with its signal line below zero and poised to rise, indicating a possible change in momentum.
On the hourly chart, AUD/USD has completed its downward wave to 0.6650 before retracing to 0.6690. Another move down to 0.6636 is expected today. If this level is reached, a subsequent upward wave towards 0.6722 is likely. The Stochastic oscillator supports this outlook, with its signal line currently above 80 but expected to drop sharply to 20, suggesting further losses are possible before a recovery emerges.
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