- AUD/USD remains on the back foot in the American session.
- US Dollar Index regains traction following Wednesday's decline.
- Uninspiring labour market report from Australia weighed on AUD.
The AUD/USD pair came under renewed bearish pressure during the American trading hours and was last seen trading at 0.7417, losing 0.85% on a daily basis. With a drop below 0.7109, AUD/USD will renew its lowest level since December.
DXY climbs above 92.60
Earlier in the day, the data from Australia showed that the Unemployment Rate declined to 4.9% in June from 5.1%. Although this reading came in much better than the market expectation of 5.5%, the underlying details of the jobs report painted a gloomy picture. The Employment Change arrived at 29.1K following May's increase of 115.2K and missed analysts' estimate of 30K. Meanwhile, Consumer Inflation Expectations declined to 3.7% from 4.4%.
In the second half of the day, the broad-based USD strength caused AUD/USD to extend its daily slide. The US Dollar Index, which lost 0.44% on FOMC Chairman Jerome Powell's dovish remarks on Wednesday, is currently rising 0.32% at 92.67.
The US Department of Labor reported that Initial Jobless Claims declined to 360K in the week ending July 10. Other data from the US revealed that the NY Empire State Manufacturing Index improved to 43 in July from 17.4 in June and the Philly Fed Manufacturing Index fell to 21.9 from 30.7. Finally, Industrial Production expanded by 0.7% in June, compared to the market expectation of 0.4%.
There won't be any high-tier data releases from Australia on Friday and the USD's market valuation is likely to continue to drive AUD/USD's action.
Technical levels to watch for
|Today last price||0.7415|
|Today Daily Change||-0.0066|
|Today Daily Change %||-0.88|
|Today daily open||0.7481|
|Previous Daily High||0.7487|
|Previous Daily Low||0.743|
|Previous Weekly High||0.7599|
|Previous Weekly Low||0.7409|
|Previous Monthly High||0.7794|
|Previous Monthly Low||0.7477|
|Daily Fibonacci 38.2%||0.7465|
|Daily Fibonacci 61.8%||0.7452|
|Daily Pivot Point S1||0.7445|
|Daily Pivot Point S2||0.741|
|Daily Pivot Point S3||0.7389|
|Daily Pivot Point R1||0.7502|
|Daily Pivot Point R2||0.7523|
|Daily Pivot Point R3||0.7558|
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.