AUD/USD rebounds to 0.6400 on US Dollar's NFP-fueled retreat
- The AUD/USD caught a much-needed bid in Friday trading after the US NFP report clobbered forecasts.
- The Aussie still remains buried deep in bear country after falling to fresh lows for 2023 in the early week.
- Market focus is set to crystallize on US inflation expectations next week.
The AUD/USD etched in a new high for Friday at the 0.6400 level after catching a broad-market risk appetite bid that sent the US Dollar (USD) lower across the FX marketscape as market risk appetite flipped risk-on to close out the trading week.
US Nonfarm Payrolls soar by 336,000 in September vs. 170,000 forecast
Despite Friday's much-needed reprieve for the Aussie (AUD), which remains down nearly 11% against the USD for the year, market sentiment is due to turn back to US inflationary pressure next week, with US Producer Price Index (PPI) numbers and the Federal Reserve's (Fed) latest meeting minutes slated for next Wednesday, to be followed by the latest US Consumer Price Index (CPI) inflation reading later in the week.
US: All eyes will be on inflation data – RBC
AUD/USD technical outlook
The Aussie rode a wave of market risk appetite higher on Friday close the daily session in the green, but the AUD/USD is still down 0.75% on the week's opening prices near 0.6433.
Despite the late-week bullish push, the AUD/USD remains firmly entrenched in bearish territory, with current price action trading well below the 200-day Simple Moving Average (SMA) at 0.6675, with near-term moves capped by the 50-day SMA near 0.6450.
AUD/USD daily chart
AUD/USD technical levels
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
