AUD/USD aims to surpass 0.6750 as Fed to pause hiking rates despite solid US labor market


  • AUD/USD is looking to climb above 0.6750 as Fed to remain neutral on interest rates.
  • The USD Index failed to get sustained positive momentum despite a solid US labor market.
  • Robust earnings could propel US inflation as households would be equipped with higher funds for disposal.

The AUD/USD pair is making efforts to shift its auction above the immediate resistance of 0.6750 in the early Asia session. The Aussie asset is expected to attract significant bids as the Federal Reserve (Fed) is expected to pause paddling the interest rates cycle despite tight United States labor market conditions.

S&P500 was heavily bought on Friday as investors focused on optimism derived from neutral guidance from the Fed and ignored US banking jitters, portraying a cheerful market mood. The US Dollar Index (DXY) looks vulnerable above the immediate support of 101.20. The USD Index failed to get sustained positive momentum despite the serious addition of fresh payrolls in the US labor market.

Meanwhile, the US Treasury yields showed some recovery as investors thought solid US Employment data could force Fed policymakers to reconsider their pausing approach. And, solid US Nonfarm Payrolls (NFP) could provide a base for the data-dependent approach to be followed by the Fed.

As per the US Employment report, the US economy added 253K fresh jobs in April, higher than the consensus of 179K and the former release of 165K. The Unemployment Rate softened to 3.4% vs. the expectations and the prior release of 3.5%. Apart from that, monthly Average Hourly Earnings accelerated at a pace of 0.5% while the street was anticipating a pace of 0.3%. Robust earnings could propel US inflationary pressures as households would be equipped with higher funds for disposal.

On the Australian Dollar front, investors will focus on the quarterly Retail Sales data. First-quarter Retail Sales are expected to contract by 0.4% vs. the former contraction of 0.2%. This might allow the Reserve Bank of Australia (RBA) to keep interest rates steady as declining retail demand is not supportive of policy tightening.

AUD/USD

Overview
Today last price 0.6752
Today Daily Change 0.0003
Today Daily Change % 0.04
Today daily open 0.6749
 
Trends
Daily SMA20 0.6681
Daily SMA50 0.6684
Daily SMA100 0.6788
Daily SMA200 0.6729
 
Levels
Previous Daily High 0.6757
Previous Daily Low 0.6689
Previous Weekly High 0.6757
Previous Weekly Low 0.6607
Previous Monthly High 0.6806
Previous Monthly Low 0.6574
Daily Fibonacci 38.2% 0.6731
Daily Fibonacci 61.8% 0.6715
Daily Pivot Point S1 0.6707
Daily Pivot Point S2 0.6664
Daily Pivot Point S3 0.6639
Daily Pivot Point R1 0.6774
Daily Pivot Point R2 0.6799
Daily Pivot Point R3 0.6842

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD struggles near multi-month low below 0.6500 after Aussie jobs report

AUD/USD struggles near multi-month low below 0.6500 after Aussie jobs report

AUD/USD hangs near its lowest level since August 6 below the 0.6500 level following the release of rather unimpressive Australian employment details for October. Meanwhile, RBA Governor Michele Bullock said earlier on that interest rates were restrictive enough and will not rise any further. 

AUD/USD News
USD/JPY briefly pops 156.00 on firmer US Dollar

USD/JPY briefly pops 156.00 on firmer US Dollar

USD/JPY holds firm near its highest level since July 24, having briefly popped 156.00 in the Asian session on Thursday. The continuation of the Trump trade lifts the US Dollar to yearly highs while Japan's stimulus plans fail to inspire the Yen. Traders watch out for any Japanese internvetion risks.  

USD/JPY News
Gold downside appears unabated, with eyes on Fed Chair Powell

Gold downside appears unabated, with eyes on Fed Chair Powell

Gold price is sitting at its lowest level in two months near $2,560 early Thursday, as buyers eagerly await US Federal Reserve Jerome Powell’s speech for a brief respite.

Gold News
XRP's open interest drops over 10% amid struggles near $0.7440 resistance

XRP's open interest drops over 10% amid struggles near $0.7440 resistance

Ripple's XRP is trading near $0.6900, down nearly 3% on Wednesday, as declining open interest could extend its price correction. However, other on-chain metrics point to a long-term bullish setup.

Read more
Trump vs CPI

Trump vs CPI

US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis. 

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures