- AUD/USD hit a four-month high in early Thursday on Australian data beats.
- Broad-market risk rally fueled by Fed rate cut expectations extends into a second day.
- Australian PMI figures due early Friday, US PMIs to close out the trading week.
The AUD/USD tapped a four-month high of 0.6728 in early Thursday trading, with the Aussie (AUD) extending a Fed-fueled risk rally after Australian labor figures beat the street, and the US Dollar (USD) tumbles across the broader FX market.
The US Federal Reserve (Fed) pivoted on its monetary policy outlook on Wednesday, tabling interest rate cut discussions for the first time in years. Fed policymakers currently expect 75 basis points in interest rate cuts through the end of 2024.
The US Dollar promptly deflated on Fed headlines, and the Aussie extended near-term gains after an unexpected bump in Australian Employment Change figures for November, adding 61.5K jobs versus the expected 11K. October previously added 42.7K new jobs (revised down steeply from 55K).
Purchasing Manager Index (PMI) figures will wrap up the trading week for both Australia and the US.
Australia’s Judo Bank Preliminary PMI figures for December will print early in the Friday trading session. The Australian economy has struggled of late, and Aussie bidders will be hoping for an improvement in the headline read. The Australian Judo Bank Manufacturing PMI last printed at 47.7 in November, with the Services PMI last printing a flat 46.0.
US PMI figures due later on Friday are expected to show a slight step back, with the S&P Global Manufacturing PMI seen declining from 49.4 to 49.3, and the Services PMI slipping backto 50.6 from 50.8.
AUD/USD Technical Outlook
Despite Wednesday’s hard rally above the 0.6700 handle, the Aussie is running the risk of getting hung up in a near-term congestion zone as the AUD struggles to develop an extension in bullish momentum following the broader market’s US Dollar rebalance.
0.6720 is hardening into a near-term ceiling for intraday candles, and the struggle for Aussie bulls will be to mount a fresh attack and muscle the AUD/USD over the 0.6730 level to take a fresh run at the 0.6800 handle.
Daily candlesticks have the AUD/USD extending further into chart territory above the 200-day Simple Moving Average (SMA), and December’s early swing highs into 0.6670 could flip into technical support in the near-term.
AUD/USD Hourly Chart
AUD/USD Daily Chart
AUD/USD Technical Levels
(This story was corrected on December 14 at 18:15 GMT to say that the US PMI release on Friday is expected to decline to 49.3, not 94.3.)
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
Editors’ Picks
EUR/USD resumes slide below 1.0500
EUR/USD gained modest upward traction ahead of Wall Street's opening but resumed its slide afterwards. The pair is under pressure in the American session and poised to close the week with losses near its weekly low at 1.0452.
GBP/USD nears 1.2600 as the US Dollar regains its poise
Disappointing macroeconomic data releases from the UK put pressure on the British Pound, yet financial markets are all about the US Dollar ahead of the weekly close. Demand for the Greenback increased in the American session, pushing GBP/USD towards 1.2600.
Gold pierces $2,660, upside remains capped
Gold (XAU/USD) puts pressure on daily lows and trades below $2,660 on Friday’s early American session. The US Dollar (USD) reclaims its leadership ahead of the weekly close, helped by rising US Treasury yields.
Broadcom is the newest trillion-dollar company Premium
Broadcom (AVGO) stock surged more than 21% on Friday morning after management estimated on Thursday’s earnings call that the market for customized AI accelerators might reach $90 billion in fiscal year 2027.
Can markets keep conquering record highs?
Equity markets are charging to new record highs, with the S&P 500 up 28% year-to-date and the NASDAQ Composite crossing the key 20,000 mark, up 34% this year. The rally is underpinned by a potent mix of drivers.
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.