Australian Dollar declines after US data and Aussie Retail Sales

• US PCE Prices Index remained steady in September, as well as the core measure.
• US jobless claims fell to 216K in the week of October 25.
• Retail Sales in Australia grew in September slightly below expectations.

The AUD/USD declined by 0.45% to 0.6545 in Thursday's session, remaining near an 11-week low of 0.6540 ahead of the US Nonfarm Payrrolls data on Friday. This decline comes after the recent surge in US inflation and mid-tier economic data.

Additionally, Retail Sales in Australia grew marginally in September, falling below expectation, which seems to be weighing on the Aussie Dollar.

Daily digest market movers: Australian Dollar declines amid weakening weakening economy and steady USD

• On the Aussie front, Retail Sales somewhat tanking in September is making investors dump the AUD as it may prompt a more dovish stance from the Reserve Bank of Australia.
• On the other hand, Market expectations for the upcoming Federal Open Market Committee (FOMC) meeting next week currently suggest a 25 -basis-point rate cut, influenced by recent economic indicators.
• A key focus for investors will be October's NFP data, with forecasts indicating 113K new jobs were added, a notable drop from September's 254K.
• The latest US jobless claims report showed a decline to 216K for the week of October 25, contradicting predictions of a rise to 230K, which underscores ongoing labor market resilience.
• The core PCE Price Index, closely monitored by the Federal Reserve, held steady at 2.7% in September, despite projections of a decrease to 2.6%.
• Additionally, the broader PCE Price Index grew at 2.1% annually in September, down slightly from August's 2.2% and below the anticipated 2.2% rate.

AUD/USD technical outlook: Pair remains bearish, indicators oversold

The daily Relative Strength Index (RSI) is currently at 30, which is in the oversold area. The RSI's slope is declining sharply, suggesting that selling pressure is rising. The Moving Average Convergence Divergence (MACD) is flat and in the red, indicating that selling pressure is flat. Both suggest that the selling pressure might have become over-extended and that a consolidation is coming.