The Australian dollar and New Zealand dollar both backed down from trendline resistance on Wednesday, similar to the British pound, despite the fact commodity prices, such as gold and oil, were broadly higher. Whether price holds below or breaks above these key levels will determine the outlook for pairs like AUD/USD and NZD/USD in coming weeks. More specifically, AUD/USD resistance looms at 0.6650 and NZD/USD resistance sits at 0.5500. Looking ahead to the next 24 hours, the November reading of the unemployment rate in Australia is forecasted to pick up to 4.4 percent from 4.3 percent, and while this is still a historically low number, the change is likely to suggest that labor market conditions will continue to weaken. In fact, the Australian economy is forecasted to have lost 15,000 jobs during November, which would mark the third drop this year. Mounting job losses may only exacerbate the slowdown in the nation, as consumers will have less incentive to spend and drive domestic demand. Overall, the Australian dollar faces downside risks from this employment report, especially if the net employment change drops more than expected. However, if the figures actually reflect even a slight increase in hiring or a stable unemployment rate, the Australian dollar could gain.

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