AUD/USD Forecast: Bulls lead ahead of Australian employment data

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7203

Australian employment data is expected to show no new jobs added in January.
Wall Street trades in the red but managed to bounce off lows with FOMC Minutes.
AUD/USD offers a near-term bullish stance as it battles the 0.7200 threshold.

The AUD/USD pair approached the 0.7200 region heading into the daily close, up for a second consecutive day. The pair advanced on the broad greenback’s weakness despite the poor tone of global stocks. European indexes closed with modest losses, while Wall Street’s decline was more substantial. However, US indexes managed to recover some ground after the release of the FOMC Meeting Minutes. Gold resumed its advance and neared its 2022 high, partially offsetting the negative effect of falling equities on AUD/USD.

Australian data also provided a reason to buy the aussie. The January Westpac Leading Index resulted at 0.13%, better than the previous 0%. On Thursday, Australia will release its January inflation figures. The country is expected to have added no new jobs in the month, while the Unemployment Rate is foreseen steady at 4.2%. The Participation Rate is expected to have decreased from 66.1% to 66%.

AUD/USD short-term technical outlook

AUD/USD buyers defended the downside at around 0.7150 through the American session, with the daily chart showing an increasing bullish momentum. Technical indicators head firmly higher within positive levels while the pair advances above its 20 SMA. The 100 SMA provides mild resistance at around 0.7248, the weekly high.

In the near term, and according to the 4-hour chart, chances are also skewed to the upside. The pair is extending gains above all of its moving averages, while technical indicators hold near overbought readings with modest bullish slopes. Bulls will have better chances if the pair breaks above 0.7215, the immediate resistance level.

Support levels: 0.7150 0.7100 0.7065

Resistance levels: 0.7215 0.7255 0.7300

View Live Chart for the AUD/USD

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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