AUD/USD edges up on mixed US data, traders eye US NFP

AUD/USD marginally rises to 0.6572, reacting to mixed US economic signals in the Asian session.
Signs of cooling US job market, with rising job cuts and jobless claims, fuel Fed rate speculation.
US manufacturing activity shows signs of recovery, complicating Fed's policy outlook and affecting currencies.
Australian PPI and US Nonfarm Payrolls reports awaited for further economic insights, may sway AUD/USD.

Christian Borjon Valencia FXStreet

The AUD/USD prints minimal gains as the Asian session begins, following Thursday’s session that witnessed the Aussie Dollar (AUD) bouncing off year-to-date (YTD) lows of 0.6508 on mixed US economic data. At the time of writing, the pair exchanges hands at 0.6572, up 0.01%.

Aussie Dollar recovers after printing new YTD low

Wall Street closed with gains following the Federal Reserve’s policy decision on Wednesday. Fed Chair Jerome Powell and Co. stated they’re ready to ease policy if the disinflation process progresses. When asked about a possible rate cut in March, Powell disregarded that option, spurring safe-haven flows.

Nevertheless, Thursday’s story is different, as data from the United States (US) could put the Fed at a crossroads. According to a US Challenger report, labor market data was soft, with companies announcing more than 80K job cuts in January. Following suit, Initial Jobless Claims for the week ending January 27 rose by 224K, exceeding forecasts and the previous reading.

Aside from this, manufacturing activity in the US improved though the ISM Manufacturing PMI came short of breaching the expansion/contraction threshold, rising to 49.1 from 47.1, exceeding projections. S&P Global revealed the US economy expanded to 50.7 from 47.9 in December.

Given the backdrop, AUD/USD traders lifted the exchange rate from below the 100-day moving average (DMA) at 0.6531.

Ahead on the Asian session, Australia’s economic docket will feature the Producer Price Index (PPI) for the last quarter of 2023. On the US front, the US economy is expected to add 155K jobs to the economy, as the Department of Labor will release the Nonfarm Payrolls report for January. Besides that, traders would be scrutinizing the University of Michigan Consumer Sentiment.

AUD/USD Price Analysis: Technical outlook

The AUD/USD is facing stir resistance at the 200-DMA at 0.6574. A breach of the latter will expose the 0.6600 figure. Further upsie is seen at the January 30 high at 0.6624. On the other hand, if sellers keep prices below the 200-DMA, that could open the door fur further downside. First support would be the 100-DMA at 0.6531, followed by the February 1 daily low of 0.6508.

AUD/USD

Overview
Today last price	0.6572
Today Daily Change	0.0011
Today Daily Change %	0.17
Today daily open	0.6561

Trends
Daily SMA20	0.6626
Daily SMA50	0.6662
Daily SMA100	0.6533
Daily SMA200	0.6577

Levels
Previous Daily High	0.6623
Previous Daily Low	0.6551
Previous Weekly High	0.6621
Previous Weekly Low	0.6552
Previous Monthly High	0.6839
Previous Monthly Low	0.6525
Daily Fibonacci 38.2%	0.6579
Daily Fibonacci 61.8%	0.6595
Daily Pivot Point S1	0.6534
Daily Pivot Point S2	0.6507
Daily Pivot Point S3	0.6463
Daily Pivot Point R1	0.6605
Daily Pivot Point R2	0.6649
Daily Pivot Point R3	0.6676

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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