AUD/USD back over 0.6500 in post-NFP Dollar rout

The AUD/USD has pushed into a 2-month high as the US Dollar slumps post-NFP.
Market sentiment has flipped firmly risk on as investors no longer fear more Fed rates.
RBA due next week, markets expecting an additional 25 bps.

Joshua Gibson FXStreet

The AUD/USD is pinning into a nine-week high bid above the 0.6500 handle as the Aussie (AUD) capitalizes on US Dollar (USD) weakness following a flubbed Nonfarm Payrolls reading, and risk-on market sentiment is sending the Aussie into its sixth green candle out of the last seven consecutive trading days.

Global markets turned the US Dollar inside out, dumping the safe haven asset and stepping into riskier assets following a worse-than-expected NFP reading that saw the US add a scant 150 thousand jobs in October, below the forecast 180K addition and slumping from September's bumper 297K print (revised down from 336K) to the indicator's worst reading since February 2021.

US data down = risk appetite up

Cooling US data is helping to confirm that the Federal Reserve (Fed) is done with rate hikes, and investors are now turning forward to start anticipating a future rate cut cycle from the US central bank. With markets hoping for an easing monetary policy outlook to make borrowing and lending cheaper once again, negative economic data for the US will remain market-positive as recession factors will push the Fed towards rate cuts sooner rather than later.

Next week sees the Reserve Bank of Australia (RBA) due to deliver its latest rate call on Tuesday, and markets are expecting the Aussie central bank to deliver a 25 basis point hike as inflation continues to simmer at the edges of the Australian economy.

AUD/USD Technical Outlook

The Aussie's technical recovery from October's lows near the 0.6300 level sees the AUD/USD climbing halfway towards the 200-day Simple Moving Average (SMA) currently turning down into 0.6625.

With the AUD/USD cleanly shearing the 50-day SMA near 0.6400, the pair is set to mark in a topside Friday close near 0.6515.

AUD/USD Daily Chart

AUD/USD Technical Levels

AUD/USD

Overview
Today last price	0.6515
Today Daily Change	0.0081
Today Daily Change %	1.26
Today daily open	0.6434

Trends
Daily SMA20	0.6357
Daily SMA50	0.6391
Daily SMA100	0.6519
Daily SMA200	0.6625

Levels
Previous Daily High	0.6456
Previous Daily Low	0.6389
Previous Weekly High	0.64
Previous Weekly Low	0.627
Previous Monthly High	0.6445
Previous Monthly Low	0.627
Daily Fibonacci 38.2%	0.643
Daily Fibonacci 61.8%	0.6415
Daily Pivot Point S1	0.6397
Daily Pivot Point S2	0.636
Daily Pivot Point S3	0.633
Daily Pivot Point R1	0.6464
Daily Pivot Point R2	0.6493
Daily Pivot Point R3	0.653

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.