AUD/USD steady as markets brace for US jobs data

Source Fxstreet
  • AUD/USD stands around 0.6280 as markets await US NFP data.
  • Fed expected to hold rates steady; June rate cut remains in focus.
  • Australian Dollar vulnerable ahead of RBA's anticipated rate cut.

The AUD/USD moves around 0.6280 on Friday as investors turned their attention to the upcoming US Nonfarm Payrolls (NFP) report. With expectations set at 170K job additions, down from 256K in December, the data will be pivotal in shaping the Federal Reserve’s (Fed) monetary policy outlook. A stronger-than-expected print could reinforce the Fed’s cautious stance, while weaker figures may fuel rate-cut speculation.

The US labor market remains a focal point for traders, with the Unemployment Rate forecasted to hold steady at 4.1%. A robust reading would strengthen the case for the Fed to maintain its wait-and-see approach on rate adjustments. On the other hand, a weaker print could revive dovish bets, with markets already pricing in a rate cut by June, as per the CME FedWatch tool.

While the US job market takes center stage, the Australian Dollar faces its own challenges. Markets widely anticipate the Reserve Bank of Australia (RBA) to lower the Official Cash Rate (OCR) to 4.1% this month. With a rate cut almost certain, the Aussie may struggle to hold onto gains, especially if broader risk sentiment turns negative.

AUD/USD Technical outlook

The AUD/USD pair has gained traction, pushing past the 20-day Simple Moving Average (SMA) at 0.6230. The Relative Strength Index (RSI) stands at 57, indicating a neutral to mildly bullish bias, while the Moving Average Convergence Divergence (MACD) histogram shows decreasing green bars, suggesting a potential loss of upward momentum. If the pair sustains above 0.6250, further upside toward 0.6320 remains possible.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks inThe U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.
Author  Irene Q.
Sep 17, Thu
The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.
placeholder
Gold ends three-week slide at the $4,400 line — eight straight days of ETF inflows vs a 5% 10-year and a 100 dollarSpot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.
Author  Suzie
Sep 20, Sun
Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.
placeholder
Dollar holds above 100 near a 3-month high — three Fed speakers and a $69 billion auction land tonightThe dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.
Author  Suzie
Yesterday 06: 34
The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
7 hours ago
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
Memory chips surge, Nasdaq notches a second straight record close — why the Dow fell 185 points anywayMicron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.
Author  Irene Q.
6 hours ago
Micron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.
Related Instrument
goTop
quote