- The post-NFP USD selloff pushed AUD/USD to the highest level since March 18.
- The lack of any follow-through buying warrants some caution for bullish traders.
- The stage still seems set for a move beyond March swing highs, near mid-0.7800s.
The AUD/USD pair caught some aggressive bids during the early North American session and jumped to the highest level since March 18, around the 0.7835 region in the last hour.
The US monthly jobs report for April missed market expectations by a big margin and triggered a broad-based US dollar selloff. This was seen as a key factor that provided a strong lift to the AUD/USD pair. Apart from this, the underlying bullish sentiment further benefitted the perceived riskier aussie and remained supportive of the positive move.
Despite the combination of supporting factors, the AUD/USD pair struggled to capitalize on the momentum or find acceptance above the 0.7815-20 horizontal barrier and quickly retreated few pips from daily swing highs. The pullback warrants some caution before confirming a near-term bullish breakout and positioning for any further appreciating move.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and are still far from being in the overbought territory. This, in turn, supports prospects for an eventual break through the mentioned barrier and an extension of this week's solid bounce from the 0.7675 region, or the lowest April 14 touched earlier this week on Tuesday.
Nevertheless, the AUD/USD pair now seems poised to surpass March monthly swing highs resistance near mid-0.7800s and aim to reclaim the 0.7900 round-figure mark for the first time since February 25. Some follow-through buying should pave the way for a move towards the 0.7965-70 region before bulls lift the pair further towards the key 0.8000 psychological mark.
On the flip side, weakness below the 0.7800-0.7790 region might now find decent support near the 0.7760 level. Any subsequent decline could be seen as an opportunity to initiate fresh bullish positions. This, in turn, should help limit the downside near the 0.7700 mark, which should now act as a strong near-term base for the AUD/USD pair.
AUD/USD 4-hour chart
Technical levels to watch
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 gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.