- The AUD/USD has pushed into a 2-month high as the US Dollar slumps post-NFP.
- Market sentiment has flipped firmly risk on as investors no longer fear more Fed rates.
- RBA due next week, markets expecting an additional 25 bps.
The AUD/USD is pinning into a nine-week high bid above the 0.6500 handle as the Aussie (AUD) capitalizes on US Dollar (USD) weakness following a flubbed Nonfarm Payrolls reading, and risk-on market sentiment is sending the Aussie into its sixth green candle out of the last seven consecutive trading days.
Global markets turned the US Dollar inside out, dumping the safe haven asset and stepping into riskier assets following a worse-than-expected NFP reading that saw the US add a scant 150 thousand jobs in October, below the forecast 180K addition and slumping from September's bumper 297K print (revised down from 336K) to the indicator's worst reading since February 2021.
US data down = risk appetite up
Cooling US data is helping to confirm that the Federal Reserve (Fed) is done with rate hikes, and investors are now turning forward to start anticipating a future rate cut cycle from the US central bank. With markets hoping for an easing monetary policy outlook to make borrowing and lending cheaper once again, negative economic data for the US will remain market-positive as recession factors will push the Fed towards rate cuts sooner rather than later.
Next week sees the Reserve Bank of Australia (RBA) due to deliver its latest rate call on Tuesday, and markets are expecting the Aussie central bank to deliver a 25 basis point hike as inflation continues to simmer at the edges of the Australian economy.
AUD/USD Technical Outlook
The Aussie's technical recovery from October's lows near the 0.6300 level sees the AUD/USD climbing halfway towards the 200-day Simple Moving Average (SMA) currently turning down into 0.6625.
With the AUD/USD cleanly shearing the 50-day SMA near 0.6400, the pair is set to mark in a topside Friday close near 0.6515.
AUD/USD Daily Chart
AUD/USD Technical Levels
|Today last price
|Today Daily Change
|Today Daily Change %
|Today daily open
|Previous Daily High
|Previous Daily Low
|Previous Weekly High
|Previous Weekly Low
|Previous Monthly High
|Previous Monthly Low
|Daily Fibonacci 38.2%
|Daily Fibonacci 61.8%
|Daily Pivot Point S1
|Daily Pivot Point S2
|Daily Pivot Point S3
|Daily Pivot Point R1
|Daily Pivot Point R2
|Daily Pivot Point R3
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.