AUD/USD advances against US Dollar on mixed US data, Aussie jobs up next

FXStreet
Updated Apr 18, 2024 24:39
Mitrade

■  AUD/USD is buoyed by an improved risk sentiment and a sluggish US economic calendar.

■  Wall Street opens higher, influencing currencies despite a slight increase in the US Dollar Index.

■  Upcoming Australian employment data could impact AUD strength, with forecasts suggesting modest job growth.


The Australian Dollar makes a U-turn and rises against the US Dollar in early trading during the North American session, gaining 0.33% amid an improvement in risk appetite. A scarce economic calendar in the United States (US) and hawkish comments from Federal Reserve Chair Jerome Powell failed to boost the Greenback. The AUD/USD trades at 0.6423.


AUD/USD gains despite hawkish Fed comments; focus on Australian jobs data


Wall Street is setting the tone, opening with gains. US Treasury yields tumble but do not undermine the buck, which stays firm, as depicted by the US Dollar Index (DXY). The DXY is up 0.11%, at 106.24.


US data revealed during the week showed that American consumers remain resilient while Industrial Production stands tall. On the negative front, US Building Permits and Housing Starts plunged due to higher mortgage rates. The Mortgage Bankers Association (MBA) revealed that rates for 30-year mortgages edged up from 7.01% to 7.13%.


In addition to the data, Fed Chair Jerome Powell said that the lack of progress on inflation would likely require keeping rates steady for “as long as needed.” The markets perceived Powell as hawkish, though Wednesday’s price action suggests the opposite.


In December 2023, the Fed revealed in its projections that most officials expected to cut rates three times due to the evolution of the disinflation process. Nevertheless, three months of higher inflation than expected via the Consumer Price Index (CPI) sparked Powell’s tilt and a repricing of fewer rate cuts than foreseen.


On the Australian front, it would feature the release of jobs data. The Employment Change is expected to add 7.2K jobs to the workforce, well below the 116.5K created in February, while the Unemployment Rate is foreseen to edge close to 4%. If the data comes weak, that would warrant a more accommodative policy by the Reserve Bank of Australia. Hence, AUD/USD traders could push the pair lower.


AUD/USD Price Analysis: Technical outlook


Despite recovering, the AUD/USD is bearishly biased, and it would require buyers to achieve a daily close above the February 13 low of 0.6442. Otherwise, the pair's first support would be the 0.6400 mark, followed by the April 16 daily low of 0.6389. The next support would be 0.6350, followed by the 0.6300 mark.


AUD/USD


Overview
Today last price 0.6426
Today Daily Change 0.0024
Today Daily Change % 0.37
Today daily open 0.6402
 
Trends
Daily SMA20 0.6532
Daily SMA50 0.6539
Daily SMA100 0.6598
Daily SMA200 0.654
 
Levels
Previous Daily High 0.6445
Previous Daily Low 0.6389
Previous Weekly High 0.6644
Previous Weekly Low 0.6456
Previous Monthly High 0.6667
Previous Monthly Low 0.6478
Daily Fibonacci 38.2% 0.6411
Daily Fibonacci 61.8% 0.6424
Daily Pivot Point S1 0.6379
Daily Pivot Point S2 0.6357
Daily Pivot Point S3 0.6324
Daily Pivot Point R1 0.6434
Daily Pivot Point R2 0.6467
Daily Pivot Point R3 0.649

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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