AUD/USD aims to surpass 0.6750 as Fed to pause hiking rates despite solid US labor market

AUD/USD is looking to climb above 0.6750 as Fed to remain neutral on interest rates.
The USD Index failed to get sustained positive momentum despite a solid US labor market.
Robust earnings could propel US inflation as households would be equipped with higher funds for disposal.

Sagar Dua FXStreet

The AUD/USD pair is making efforts to shift its auction above the immediate resistance of 0.6750 in the early Asia session. The Aussie asset is expected to attract significant bids as the Federal Reserve (Fed) is expected to pause paddling the interest rates cycle despite tight United States labor market conditions.

S&P500 was heavily bought on Friday as investors focused on optimism derived from neutral guidance from the Fed and ignored US banking jitters, portraying a cheerful market mood. The US Dollar Index (DXY) looks vulnerable above the immediate support of 101.20. The USD Index failed to get sustained positive momentum despite the serious addition of fresh payrolls in the US labor market.

Meanwhile, the US Treasury yields showed some recovery as investors thought solid US Employment data could force Fed policymakers to reconsider their pausing approach. And, solid US Nonfarm Payrolls (NFP) could provide a base for the data-dependent approach to be followed by the Fed.

As per the US Employment report, the US economy added 253K fresh jobs in April, higher than the consensus of 179K and the former release of 165K. The Unemployment Rate softened to 3.4% vs. the expectations and the prior release of 3.5%. Apart from that, monthly Average Hourly Earnings accelerated at a pace of 0.5% while the street was anticipating a pace of 0.3%. Robust earnings could propel US inflationary pressures as households would be equipped with higher funds for disposal.

On the Australian Dollar front, investors will focus on the quarterly Retail Sales data. First-quarter Retail Sales are expected to contract by 0.4% vs. the former contraction of 0.2%. This might allow the Reserve Bank of Australia (RBA) to keep interest rates steady as declining retail demand is not supportive of policy tightening.

AUD/USD

Overview
Today last price	0.6752
Today Daily Change	0.0003
Today Daily Change %	0.04
Today daily open	0.6749

Trends
Daily SMA20	0.6681
Daily SMA50	0.6684
Daily SMA100	0.6788
Daily SMA200	0.6729

Levels
Previous Daily High	0.6757
Previous Daily Low	0.6689
Previous Weekly High	0.6757
Previous Weekly Low	0.6607
Previous Monthly High	0.6806
Previous Monthly Low	0.6574
Daily Fibonacci 38.2%	0.6731
Daily Fibonacci 61.8%	0.6715
Daily Pivot Point S1	0.6707
Daily Pivot Point S2	0.6664
Daily Pivot Point S3	0.6639
Daily Pivot Point R1	0.6774
Daily Pivot Point R2	0.6799
Daily Pivot Point R3	0.6842

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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