- The AUD/USD has walked back all of the day's gains in Friday trading as the DXY sees resurgence.
- Friday sees the Aussie down over 1% against the Greenback.
- A looming US government shutdown is seeing markets balk as investors clam up and jump back into the USD.
The AUD/USD has slipped over 65 pips on Friday to slide back into the 0.6430 neighborhood as the US Dollar Index (DXY) catches a broad-market lift in investor fears of an impending US government shutdown.
The American government is poised to head straight into a partisan lockdown, which could see next week's Non-Farm Payrolls (NFP) thrown into question; if the US government agency responsible for assembling and disseminating the NFP figures is furloughed, investors will be missing the regularly-scheduled labor figures.
Australian data failed to spark firm faith in the Aussie this week, after Australian Retail Sales failed to meet market expectations on Thursday. Aussie Retail Sales printed at a disappointing 0.2%, flubbing the previous read of 0.5% and coming in below the forecast 0.3%.
Read More:
AUD/USD clings to the range bound theme – UOB
A re-test of 2022 lows seems inevitable – SocGen
Forex Today: Another positive week for the Dollar
AUD traders will now be looking ahead to next week's Aussie data docket, with Securities Inflation on Monday and the Reserve Bank of Australia's (RBA) next rate meeting on Tuesday.
The RBA is broadly forecast to hold rates steady at 4.1% as economic growth languishes for the Antipodean economy, and investors will be looking for any hints in the RBA's following rate statement report. The RBA is slated to appear at 03:300 GMT on Tuesday.
AUD/USD technical outlook
Friday's backslide sees the AUD/USD all set for a technical rejection from the 34-day Exponential Moving Average (EMA) on the daily candles, and the pair remains trapped in familiar consolidation.
The AUD remains a weakly-bid currency, and swing lows have been chewing out progressively lower floors near 0.6325.
The 200-day Simple Moving Average (SMA) remains high above current price action near 0.6700, and buyers will first need to contend with pushing the AUD/USD back over the 100-day SMA near 0.6575.
AUD/USD daily chart
AUD/USD technical levels
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 retreats from daily highs, holds above 1.0800
EUR/USD loses traction but holds above 1.0800 after touching its highest level in three weeks above 1.0840. Nonfarm Payrolls in the US rose more than expected in June but downward revisions to May and April don't allow the USD to gather strength.
GBP/USD struggles to hold above 1.2800 after US jobs data
GBP/USD spiked above 1.2800 with the immediate reaction to the mixed US jobs report but retreated below this level. Nonfarm Payrolls in the US rose 206,000 in June. The Unemployment Rate ticked up to 4.1% and annual wage inflation declined to 3.9%.
Gold approaches $2,380 on robust NFP data
Gold intensifies the bullish stance for the day, rising to the vicinity of the $2,380 region following the publication of the US labour market report for the month of June. The benchmark 10-year US Treasury bond yield stays deep in the red near 4.3%, helping XAU/USD push higher.
Crypto Today: Bitcoin, Ethereum and Ripple lose key support levels, extend declines on Friday
Crypto market lost nearly 6% in market capitalization, down to $2.121 trillion. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) erased recent gains from 2024.
French Elections Preview: Euro to “sell the fact” on a hung parliament scenario Premium
Investors expect Frances's second round of parliamentary elections to end with a hung parliament. Keeping extremists out of power is priced in and could result in profit-taking on Euro gains.