- Upbeat aussie jobs report assisted AUD/USD to build on the post-FOMC positive move.
- The risk-on mood also benefitted the perceived riskier aussie and remained supportive.
- Investors look forward to second-tier US economic releases for a fresh trading impetus.
The AUD/USD pair now seems to have entered a bullish consolidation phase and was seen oscillating in a range around the 0.7830-35 region, or over two-week tops set earlier this Thursday.
A combination of supporting factors assisted the pair to gain some follow-through traction on Thursday and built on the overnight post-FOMC strong positive move of over 100 pips from the 0.7700 mark. Despite predicting a V-shaped economic recovery in the US, the Fed maintained its ultra-dovish tone and reiterated that it was in no rush to raise interest rates at least through 2023. The announcement triggered a massive US dollar selloff and prompted some aggressive short-covering move around the AUD/USD pair.
The aussie dollar got an additional boost from Thursday’s upbeat Australian employment details, which showed that the number of employed people rose by 88.7K in February. The reading surpassed even the most optimistic estimates and was accompanied by a sharp fall in the unemployment rate to a fresh post-pandemic low level of 5.8%. Apart from this, the prevalent bullish sentiment in the financial markets further benefitted the perceived riskier Australian dollar and contributed to the AUD/USD pair's move back closer to monthly tops.
It, however, remains to be seen if bulls are able to capitalize on the momentum or the 0.7835-40 supply zone, or monthly swing highs continue to cap the upside for the AUD/USD pair. Market participants now look forward to the US economic docket, featuring the releases of the Philly Fed Manufacturing Index and the usual Initial Weekly Jobless Claims for a fresh impetus later during the early North American session. This, along with the broader market risk sentiment, should assist traders to grab some short-term opportunities.
Technical levels to watch
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 trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800, as traders lack directional impetus amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.