• AUD/USD fell on Wednesday, reaching five-week lows below 0.6700.
• Markets await key employment figures from Australia in Thursday’s session.
• A stronger USD, worries from the Chinese economic situation and falling metal prices are pushing down the Aussie.

The AUD/USD continued its downtrend on Wednesday, declining by 0.60% to 0.6662, marking a five-week low. The pair breached the crucial 0.6700 support level, potentially leading to a test of the 200-day SMA at 0.6625. The outcome of local employment figures to be released on Thursday will also set the pace of the Aussie’s dynamics.

Despite a mixed economic outlook for Australia, the Reserve Bank of Australia's (RBA) focus on combating high inflation has tempered market expectations. As a result, the markets now anticipate only a modest 0.25% interest rate cut in 2024. If employment data comes in weak, markets might place bets on another cut.