- The Aussie is trading on the low side ahead of AU employment figures which are expected to beat, and extend the indicator's positive run.
- The next US session also sees US Retail Sales, and fortunes could reverse quickly if the numbers disappoint.
The AUD/USD is trading down in the Asia session, in play around 0.7560 after a volatile Wednesday that saw the pair climb to familiar levels near the 0.7600 handle before plummeting into 0.7530 on a 25 bps rate hike from the US FOMC, but the pair recovered in the late US session.
Today brings Australian Employment figures, and the printing is expected to rise for a 19th consecutive month, an indicator record. Australian jobs data is expected to get boosted by recent positive leading data, as well as 'favorable seasonals'. Aussie bulls will happily take any good news they can get as the AUD fights to keep momentum going on a technical recovery from an eleven-month low in May.
On the US side, American Retail Sales figures will be seen at 12:30 GMT for Thursday, with the headline year-on-year Retail Sales (excluding autos) for the month of May expected to come in at 0.5%, a minor uptick from the previous reading of 0.3%. Economic data for the US economy has been improving quite strong as of late, but another unexpected downturn in the figures could see the US Fed in full retreat over its current policy.
AUD/USD Levels to watch
The Aussie fell off steeply after the US Fed hiked interest rates by 25 bps, but recovered quickly and ended Wednesday mostly flat, while the run-up into Wednesday's US session gave a re-tap of the current descending trendline, confirming a bearish bias. The ongoing long-term technical correction from May's bottom at 0.7421 is set to face challenges if Aussie bulls don't spin the pair around.
Spot rate: 0.7567
Relative change: -0.12%
High: 0.7582
Low: 0.7561
Trend: Bearish
Support 1: 0.7552 (61.8% 1-Month Fibonacci retracement level)
Support 2: 0.7529 (Wednesday low)
Support 3: 0.7475 (one month low)
Resistance 1: 0.7608 (Wednesday high, failed break of key major level)
Resistance 2: 0.7623 (current week high)
Resistance 3: 0.7676 (two-week high; technical top)
Share on Twitter Share on Facebook Share on Linkedin
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 stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.