- Unemployment in the U.S. rises to 4% in June.
- Wage inflation grows by less than expected.
- US Dollar Index looks to end the week below the 94 mark.
The AUD/USD pair advanced to a fresh two-week high of 0.7445 after the mixed NFP report from the United States but struggled to stretch higher. As of writing, the pair was trading at 0.7425, adding 0.5% on the day.
Today's crucial employment data from the United States showed that nonfarm payrolls grew by 213K in June to surpass the market expectation of 195K. However, amid a surprise increase in the labor force participation rate, the unemployment rate rose to 4%. More importantly, the wage inflation stayed unchanged at 2.7% on a yearly basis to miss the experts' estimate of 2.8%.
Although the CME Group FedWatch Tool's September rate hike probability came within a touching distance of 80% after the data, the greenback met a new selling pressure and dragged the US Dollar Index to its lowest level since mid-June at 93.66. At the moment, the index is down 0.4% on the day at 93.75.
On the other hand, major equity indexes in the United States started the day slightly higher. However, with the trade war uncertainty weighing on the market sentiment, risk-sensitive assets could have a difficult time finding more demand in the remainder of the session.
Technical levels to consider
The pair could encounter the first technical support at 0.7400 (psychological level/20-DMA) ahead of 0.7360 (Jul. 5 low) and 0.7310 (Jul. 2 low). On the upside, resistances align at 0.7445 (daily high), 0.7500 (psychological level/50-DMA) and 0.7580 (100-DMA).
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
EUR/USD holds losses below 1.0600 ahead of US NFP release
EUR/USD stays defensive below 1.0600 in the European session on Friday. The US Dollar holds ground due to profit-taking and a softer risk tone. Traders refrain from placing fresh bets on the pair ahead of the critical US Nonfarm Payrolls data release.
Gold stays below $2,640 ahead of US NFP report
Gold price struggles to capitalize on its goodish intraday bounce from a one-and-half-week low touched earlier this Friday, though it manages to hold above $2,630. Investors refrain from taking large positions ahead of the November jobs report from the US.
US Nonfarm Payrolls set to show hiring bounced back in November after October’s blip
Economists expect the Employment Report to show that the US economy created 200,000 jobs in November, following a meagre gain of 12K in October due to distortions caused by two hurricanes and the strike at Boeing.
Bitcoin experiences volatility post $100K milestone
Bitcoin rebounds to $97,000 on Friday after a volatile drop to $90,500, following its $100K milestone the day before. Ethereum maintains bullish momentum above key support levels, signaling a potential rally toward $4,000. In contrast, Ripple exhibits bearish tendencies, hinting at further declines.
GBP/USD eases from multi-week high, trades with negative bias below mid-1.2700s
GBP/USD struggles to capitalize on its gains registered over the past three days. BoE Governor predicted four rate cuts in 2025 and weigh on the British Pound. Subdued USD price action could support the pair ahead of the US NFP report.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.