AUD/USD approaches the 20-day SMA as the USD tumbles

AUD/USD rose to a 5-day high towards 0.6465 and threatened the 20-day SMA of 0.6475.
Markets are now pricing in rate cuts by the Fed in June 2024.
All eyes are now on US and Australia's mid- and high-tier economic data to be released this week.

Patricio Martín FXStreet

The AUD/USD soared by 0.60% to the 0.6465 level, mainly driven by a USD weakness fueled by poor labour market figures from the US and markets consequently betting on sooner rate cuts by the Federal Reserve (Fed). On the AUD’s side, investors await housing data from Australia from July to be released Wednesday and the monthly Consumer Price Index (CPI) from July.

The USD took a hit after the US Job Openings and Labor Turnover Survey (JOLTS) declined to 8.82 million, lower than the market's expectations of 9.465 million. It is worth noticing that the labour market situation will highly determine the short-term USD trajectory as Federal Reserve officials and Jerome Powell stated that ongoing decisions will be decided “carefully”, pointing out that the labour market is still unbalanced. That said, markets could see volatility during this week when the US reports the ADP Employment Change from August on Wednesday and the Nonfarm Payrolls report from the same month.

The US Treasury yields for the 2, 5 and 10-year bond sharply decreased, reflecting dovish bets on the Federal Reserve. In line with that, World Interest Rates Probabilities (WIRP) show that markets are still betting on high chances of a 25 bps hike in November but have pushed back rate cuts by the Federal Reserve (Fed) from July to June.

AUD/USD Levels to watch

Based on the daily chart, AUD/USD maintains a neutral to bullish technical perspective, indicating that the bulls are making strides in regaining control. The Relative Strength Index (RSI) shows an upward trend below its midline, suggesting a potential resurgence of bullish strength, while the Moving Average Convergence (MACD) histogram prints bigger green bars. Moreover, the pair is below the 20,100 and 200-day Simple Moving Averages (SMAs), suggesting that the buyers are struggling to overcome the overall bearish trend, and the bears are still in charge.

Support levels: 0.6430, 0.6400, 0.6380.

Resistance levels: 0.6475 (20-day SMA), 0.6500, 0.6525.

AUD/USD Daily Chart

AUD/USD

Overview
Today last price	0.6469
Today Daily Change	0.0040
Today Daily Change %	0.62
Today daily open	0.6429

Trends
Daily SMA20	0.6484
Daily SMA50	0.6628
Daily SMA100	0.6652
Daily SMA200	0.6726

Levels
Previous Daily High	0.644
Previous Daily Low	0.6402
Previous Weekly High	0.6488
Previous Weekly Low	0.638
Previous Monthly High	0.6895
Previous Monthly Low	0.6599
Daily Fibonacci 38.2%	0.6425
Daily Fibonacci 61.8%	0.6416
Daily Pivot Point S1	0.6407
Daily Pivot Point S2	0.6386
Daily Pivot Point S3	0.6369
Daily Pivot Point R1	0.6445
Daily Pivot Point R2	0.6462
Daily Pivot Point R3	0.6483

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

AUD/USD turns lower toward 0.7000 after mixed Australian jobs data

AUD/USD is losing ground toward 0.7000 in the Asian session on Thursday, following the release of the Australian August jobs report, which showed that the Unemployment Rate rose to 4.6% versus 4.5% expected, while Employment Change beat estimates, arriving at 39.5K. Traders also remain unnerved ahead of the critical Trump-Xi meeting.

USD/JPY keeps the red near 158.00 as Japanese Yen firms up

USD/JPY retreats from three-week highs and holds losses near 158.00 in the Asian session on Thursday. Surging Japanese bond yields lift the Yen amid looming intervention risks, while the US Dollar preserves overnight gains to a two-month high amid hawkish Fed bets and elevated US bond yields.

Gold braces for two-way risks as Trump-Xi meeting looms

Gold is consolidating the previous decline in Thursday’s Asian trades, at weekly lows below $4,300, awaiting the highly anticipated meeting between US President Donald Trump and his Chinese counterpart Xi Jinping later in the day.

Bitcoin slips to $84,000 on rate hike bets – Worldcoin, Pepe lead losses

Bitcoin (BTC) price trades below $84,000 on Thursday, extending losses after a 2% decline the previous day. The pullback aligns with renewed inflation and rate-hike concerns, as US composite and services PMIs rose to 58.4 and 58.7 in September. Worldcoin (WLD) and Pepe (PEPE) recorded double-digit losses over the last 24 hours, emerging as the worst performers.

US Treasury Secretary Bessent says US-China trade truce extended through January 10

US Treasury Secretary Scott Bessent said that the United States and China have agreed to extend a bilateral trade truce that was set to expire in November through January 10, Blomoberg reported on Wednesday. This move came after Bessent and China’s Vice Premier He Lifeng held an unscheduled meeting in Washington.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.