AUD/USD clings to modest intraday gains above mid-0.7700s

  • AUD/USD gained some positive traction on Thursday, albeit lacked any follow-through buying.
  • The aussie benefitted from a fall in the unemployment rate amid a subdued USD price action.
  • A cautious mood around the equity markets capped gains for the perceived riskier currency.

The AUD/USD pair held on to its modest daily gains above mid-0.7700s through the early European session, albeit lacked any strong follow-through buying.

A combination of factors assisted the pair to regain some positive traction on Thursday and for now, seems to have snapped two consecutive days of the losing streak. A modest pullback in the US Treasury bond yields kept the US dollar bulls on the defensive and extended some support to the AUD/USD pair.

The Australian dollar further benefitted from the latest jobs data, which showed that the unemployment rate fell to 6.4% in January. This was better than consensus estimates pointing to a dip to 6.5% from 6.6% previous. The report also showed the economy added 29.1K new jobs as against 40K anticipated.

That said, a cautious mood –  as depicted by a softer tone surrounding the equity markets – kept a lid on any further gains for the perceived riskier aussie. Adding to this, expectations for a relatively faster US economic recovery further collaborated towards capping the upside for the AUD/USD pair.

Investors turned optimistic about the strength of the US economic outlook amid the impressive pace of COVID-19 vaccinations and the slowing pace of infections. Wednesday's upbeat US monthly Retail Sales data reinforced the view amid progress on the US President Joe Biden's $1.9 trillion stimulus package.

Even from a technical perspective, failure to find acceptance above the 0.7800 mark earlier this week warrants some caution for bullish traders. This, in turn, makes it prudent to wait for some strong follow-through buying before positioning for any further appreciating move for the AUD/USD pair.

Market participants now look forward to the US economic docket, featuring Philly Fed Manufacturing Index, the usual Initial Weekly Jobless Claims and housing market data. This, along with the US bond yields, will influence the USD and produce some trading opportunities around the AUD/USD pair.

Technical levels to watch


Today last price 0.7758
Today Daily Change 0.0006
Today Daily Change % 0.08
Today daily open 0.7752
Daily SMA20 0.7701
Daily SMA50 0.7675
Daily SMA100 0.7453
Daily SMA200 0.7239
Previous Daily High 0.7772
Previous Daily Low 0.7724
Previous Weekly High 0.7773
Previous Weekly Low 0.765
Previous Monthly High 0.782
Previous Monthly Low 0.7592
Daily Fibonacci 38.2% 0.7742
Daily Fibonacci 61.8% 0.7753
Daily Pivot Point S1 0.7726
Daily Pivot Point S2 0.7701
Daily Pivot Point S3 0.7678
Daily Pivot Point R1 0.7775
Daily Pivot Point R2 0.7798
Daily Pivot Point R3 0.7824



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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more