AUD/USD grinds higher around 0.7200 on mixed Australia employment data

AUD/USD prints three-day uptrend while poking weekly high on mixed Aussie jobs data.
Australia Employment Change rose past forecasts, Unemployment Rate met expectations in January.
Risk appetite remains fragile over Russia, Fed concerns, yields, equities drop of late.
Second-tier US data will decorate calendar but qualitative catalysts are the key to watch for clear direction.

Anil Panchal FXStreet

AUD/USD pauses three-day uptrend around 0.7200 following the mixed Australia jobs report during the early Asian session on Thursday.

The Aussie pair initially cheered softer US dollar and optimism surrounding the UK-Australia trade ties to print gains. However, the market’s anxiety joined mixed data to probe the bulls of late.

That said, Australia’s Employment Change rose past 0.0K forecast to 12.9K, below 64.8K prior, whereas the Unemployment Rate remained unchanged to 4.2%, meeting market consensus, in January. Further, the Participation Rate rose past 66.0% expected and 66.1% previous readouts to 66.2% during the stated month.

It’s worth noting that UK PM Boris Johnson praised strong ties between Britain and Australia, also lauded concerns of a better future, following a video call with Australian Prime Minister Scott Morrison.

Elsewhere, indecision over Russia-Ukraine tensions and Fed’s next move weigh on the risk barometers like US Treasury yields and equities. That said, the US 10-year Treasury yields dropped 2.3 basis points (bps) to 2.024% whereas S&P 500 Futures decline 0.25% at the latest.

Having witnessed no reaction to the positive surprise of Aussie Employment Change, AUD/USD traders will pay attention to the risk catalysts for fresh impulse, which in turn challenge the pair’s latest run-up. Also important will be the second-tier US economics, mainly the housing market numbers, jobless claims and Philadelphia Fed Manufacturing Survey.

Technical analysis

Unless declining back below the 50-DMA level near 0.7170, AUD/USD remains on the way to the 0.7235-45 key resistance area comprising the 100-DMA and a descending trend line from early November. The bullish bias also gains support from firmer RSI and MACD signals.

Additional important levels

Overview
Today last price	0.7208
Today Daily Change	0.0007
Today Daily Change %	0.10%
Today daily open	0.7201

Trends
Daily SMA20	0.713
Daily SMA50	0.7172
Daily SMA100	0.7245
Daily SMA200	0.7355

Levels
Previous Daily High	0.7206
Previous Daily Low	0.7143
Previous Weekly High	0.725
Previous Weekly Low	0.7064
Previous Monthly High	0.7315
Previous Monthly Low	0.6966
Daily Fibonacci 38.2%	0.7182
Daily Fibonacci 61.8%	0.7167
Daily Pivot Point S1	0.716
Daily Pivot Point S2	0.712
Daily Pivot Point S3	0.7097
Daily Pivot Point R1	0.7224
Daily Pivot Point R2	0.7247
Daily Pivot Point R3	0.7287

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

AUD/USD eyes 0.7000 as USD remains on the back foot amid softer bond yields

AUD/USD fills a modest bearish gap on Monday, approaching 0.7000 during the Asian session amid holiday-thinned liquidity. The US Dollar remains on the back foot as US bond yields pull back from multi-year highs, supporting the pair. However, the Fed's hawkish outlook and the US-Iran standoff should limit USD losses. Moreover, diminishing odds of another RBA rate hike in November might cap the Aussie.

USD/JPY remains confined in a familiar range around 158.00

USD/JPY extends its range-bound price action at the start of a new week, trading around 158.00 as bulls remain on high alert amid speculation that authorities would step in to prop up the Japanese Yen. Furthermore, softer US bond yields keep US Dollar bulls on the back foot and cap the currency pair. However, geopolitical uncertainties could limit losses for the safe-haven buck amid thin liquidity due to a holiday in Japan and the US.

Gold advances to over one-week top, above $4,200 on softer bond yields/USD

Gold moves above $4,200 on Monday, hitting an over one-week high during the Asian session as softer US bond yields keep US Dollar bulls on the defensive. However, the US-Iran standoff over the Strait of Hormuz, along with a hawkish Fed, could limit USD losses. This could cap non-yielding bullion as traders look to US inflation figures and Fed Chair Kevin Warsh's speech for a fresh impetus during the latter part of this week.

Week ahead: US CPI, France’s budget crisis and Q3 earnings to set the market tone

The US dollar held relatively strong this week, despite the disappointing US jobs report on October 2, which further decreased the probability of a back-to-back rate hike by the Fed at the upcoming gathering on October 28.

Middle East War updates: New attack launched on Saudi airport

Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week. In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?