AUD/USD recovers RBA’s unchanged policy-led losses, US Employment in focus

AUD/USD has shown recovery as the focus has shifted to US labor market data.
RBA decided to keep interest rates steady as inflation has decelerated sharply to 5.8%.
The US Dollar Index has turned sideways around 103.00 as investors are awaiting the release of the US labor market data.

Sagar Dua FXStreet

The AUD/USD pair has delivered a V-shape recovery after dropping to near 0.6640 in the London session. The Aussie asset has recovered its entire losses inspired by an unchanged interest rate decision by the Reserve Bank of Australia (RBA).

S&P500 futures have posted marginal losses in Europe. US equities ended with nominal gains on Monday as shortened week due to a holiday on Tuesday on account of Independence Day has sidelined investors. The overall market mood is quiet ahead of the quarter result season which is expected to remain volatile due to higher interest rates by the Federal Reserve (Fed).

The US Dollar Index (DXY) has turned sideways around 103.00 as investors are awaiting the release of the United States labor market data for further guidance. As per the estimates, US Automatic Data Processing (ADP) private employment report is expected to disclose the addition of fresh 180K employees, lower than the former addition of 278K. The yields offered on 10-year US Treasury bonds have jumped to near 3.88%.

Meanwhile, the Australian Dollar has recovered some gains despite RBA Governor Philip Lowe maintaining the status quo. The street was mixed as one school of thought was favoring one more rate hike knowing the fact that Australian inflation is far from the desired rate of 2%.

While the other school believed that a steady monetary policy would be better as monthly inflation has sharply softened to 5.8% and the central bank would get some time to assess monetary policy conditions.

AUD/USD

Overview
Today last price	0.668
Today Daily Change	0.0008
Today Daily Change %	0.12
Today daily open	0.6672

Trends
Daily SMA20	0.6732
Daily SMA50	0.6673
Daily SMA100	0.6697
Daily SMA200	0.6693

Levels
Previous Daily High	0.6692
Previous Daily Low	0.6637
Previous Weekly High	0.6721
Previous Weekly Low	0.6595
Previous Monthly High	0.69
Previous Monthly Low	0.6484
Daily Fibonacci 38.2%	0.6671
Daily Fibonacci 61.8%	0.6658
Daily Pivot Point S1	0.6642
Daily Pivot Point S2	0.6612
Daily Pivot Point S3	0.6588
Daily Pivot Point R1	0.6697
Daily Pivot Point R2	0.6722
Daily Pivot Point R3	0.6752

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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