- AUD/USD ended above the pivot of 0.7079 and the 23.6% down at 0.7047, meeting the 21-D SMA.
- AUD/USD drifts lower in the early Asian open, currently trading at 0.7112, marking a low of 0.7107, down from the high of 0.7119.
AUD/USD benefitted on Friday on the back of sentiment that Sino/US trade relations are back on track, accompanied by improved services PMIs in China which lifted spirits in the high beta, EM-FX and antipodeans. AUD/USD rallied from the 0.7020s and reached a high in the 0.7120s.
The other main drivers on Friday were with the People's Bank of China (PBOC) becoming the first central bank in 2019 to change its monetary policy stance by lowering the reserve requirement ratio for large financial institutions by a total of one percentage point. This was resulting in the release of a net 800 billion yuan in funds that can be used to boost loans to private companies - a positive for risk.
There was an additional feed of headlines with Fed Chairman Powell speaking briefly on the economy at the AEA event. Powell effectively rate policy on hold, for the time being, saying the Fed will evaluate developments in the economy, financial markets and abroad in coming months - (Stock markets took comfort from his words rallying hard to end the day several hundreds of points higher).
As for the US non-farm payrolls, it rose 312k in December, smashing expectations of 184k. The unemployment rate was 3.9%. The average hourly earnings rose 3.2%, and the participation rate rose 0.2 to 63.1%.
AUD/USD levels
Valeria Bednarik, the Chief Analyst at FXStreet, explained that the recovery has been quite impressive, yet in the daily chart, the AUD/USD pair settled right around a bearish 20 DMA, which maintains its downward slope below the larger ones:
"Technical indicators in the mentioned chart have recovered from oversold readings, maintaining their upward slopes but within negative ground, leaning the risk to the upside without confirming additional gains just yet. Shorter term, and according to the 4 hours chart, the pair seems poised to extend its gains, having settled a couple of pips above its 100 SMA for the first time in a month, while technical indicators continue heading north despite being in overbought territory."
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
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Top 3 Price Prediction BTC, ETH, XRP: Retail watches from the sidelines with a bias for shorts
Bitcoin is showing strength as markets head into the Easter holidays. As it rises, altcoins are following suit, with Ethereum and Ripple posting almost similar gains. Meanwhile, there remains an unfilled CME Gap, with a lot of liquidity also resting above and below BTC price.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.