AUD/USD drops for three straight days as Wall Street gains offset by risk aversion


  • The US labor market eases, as Initial Jobless Claims for April 1 rise to 228K, exceeding estimates of 200K
  • St. Louis Fed President Bullard notes stronger than expected Q1 data while warning of “sticky” inflation.
  • US Nonfarm Payrolls are expected at 240K, while the Unemployment Rate is foreseen at 3.6%.

The AUD/USD extends its losses to three consecutive days, as Wall Street is set to finish the week with gains, except for the Dow Jones, losing 0.02%. In the FX space, risk aversion was the main driver of the session, weakening high beta currencies, like the Australian Dollar (AUD), which tumbled 0.74% vs. the buck. At the time of writing, the AUD/USD is trading at 0.6671.

AUD/USD falls below 0.6700, weighed by the risk-off sentiment in the FX market

On Thursday, the North American session was characterized by fluctuating sentiment, though US equity bulls lifted the S&P 500 and the Nasdaq. The US economic docket features Initial Jobless Claims for April 1, which jumped to 228K, above estimates of 200K, but trailed the prior’s week, which was upward revised to 246K.

Since the beginning of the week, the employment index of the US PMIs has shown signs that hiring is decelerating. That was confirmed by the US JOLTs Opening report, which showed that vacancies shifted downwards. Therefore, growing speculations for a Federal Reserve’s (Fed) pause on its tightening cycle increased.

On Wednesday, the ADP Employment Change report for March showed that companies hired fewer employees than expected. Given the backdrop, the latest US labor market data has sparked worries that an upcoming US recession is around the corner.

Hence, the AUD/USD began Thursday’s session at around 0.6730s, the day’s high. Nevertheless, it resumed its downtrend, as the release of the US Nonfarm Payrolls report and the Good Friday holiday motivated traders to book profits.

OF late, the St. Louis Federal Reserve President James Bullard commented that Q1’s incoming data is more robust than expected, adding that financial conditions are less tighter than the 2007-2009 crisis. Bullard said inflation would be “sticky going forward” and that the Fed “needs to stay at it” to get inflation back to its 2% target.

An absent Australian economic docket will leave traders focused on the release of the US Nonfarm Payrolls. The US Bureau of Labor Statistics (BLS) will release the report on April 7 at 12:30 GMT. Most banks expect the US economy to add 240K jobs after a February increase of 311K. The Unemployment Rate is estimated to stay steady at 3.6%, while Average Hourly Earnings are declining to 4.3% YoY, vs. 4.6% in February.

AUD/USD Technical Levels

AUD/USD

Overview
Today last price 0.6672
Today Daily Change -0.0048
Today Daily Change % -0.71
Today daily open 0.672
 
Trends
Daily SMA20 0.6679
Daily SMA50 0.6801
Daily SMA100 0.68
Daily SMA200 0.6749
 
Levels
Previous Daily High 0.678
Previous Daily Low 0.6677
Previous Weekly High 0.6738
Previous Weekly Low 0.6634
Previous Monthly High 0.6784
Previous Monthly Low 0.6564
Daily Fibonacci 38.2% 0.6716
Daily Fibonacci 61.8% 0.6741
Daily Pivot Point S1 0.6672
Daily Pivot Point S2 0.6623
Daily Pivot Point S3 0.6568
Daily Pivot Point R1 0.6775
Daily Pivot Point R2 0.6829
Daily Pivot Point R3 0.6878

 

 

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

Gold refreshes all-time highs above $3,000 on escalating geopolitical tensions

Gold refreshes all-time highs above $3,000 on escalating geopolitical tensions

Gold price is reneweing record highs beyond $3,000 early Tuesday on intensifying geopolitical Middle East tensions. Israel resumes military operations against Hamas in Gaza after the group rejected US proposals for extending ceasefire. Further US-Iran tensions add to the latest leg up in the safe-haven Gold. 

Gold News
AUD/USD trades with caution below 0.6400 amid MiIddle East tensions

AUD/USD trades with caution below 0.6400 amid MiIddle East tensions

AUD/USD has paused its upsurge, trading with caution in Tuesday's Asian trading. Traders prefer to stay on the sidelines amid intensifying geopolitical risks in the Middle East, reducing the appeal of the higher-yielding Aussie. Meanwhile, the US Dollar finds its feet due to risk aversion. 

AUD/USD News
USD/JPY sits at two-week high near 149.50 as US Dollar finds demand

USD/JPY sits at two-week high near 149.50 as US Dollar finds demand

USD/JPY sits at two-week high near 149.50 in the Asian session on Tuesday as renewed Middle East geopolitical jitters revive the safe-haven demand for the US Dollar. However, further upside appears elusive amid divergent BoJ-Fed expectations and rising trade tensions. 

USD/JPY News
Solana price faces 50-day resistance as SOL futures debut on CME Group with $5M volume on fifth anniversary

Solana price faces 50-day resistance as SOL futures debut on CME Group with $5M volume on fifth anniversary

Solana stagnated around the $128 mark on Monday despite multiple bullish catalysts. The recent SOL unlocks by Alameda Research, ahead of FTX creditor repayments, have created a persistent bearish overhang since early March.

Read more
Five Fundamentals for the week: Fed leads central bank parade as uncertainty remains extreme

Five Fundamentals for the week: Fed leads central bank parade as uncertainty remains extreme Premium

Central bank bonanza – perhaps its is not as exciting as comments from the White House, but central banks still have sway. They have a chance to share insights about the impact of tariffs, especially when they come from the world's most powerful central bank, the Fed.  

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025