AUD/USD retreats from one-week highs, remains strong above 0.6820

Aussie among top performers on Friday.
AUD/USD retreat from near 0.6880 found support at 0.6820.
AUD/NZD prints one-week highs around 1.1200.

Matías Salord FXStreet

The AUD/USD peaked during the European session at 0.6877, the highest level since August 31 and then pulled back amid a stabilization of the greenback. The retreat found support at 0.6820 and the pair is about to end the week on a positive note with gains.

A broad-based correction of the US dollar, higher commodity and equity prices are helping the aussie confirm weekly gains. The Australian dollar is among the top performers on Friday. Against the kiwi hit one-week highs, with AUD/NZD testing levels above 1.1200.

On a weekly basis, the AUD/USD managed to rebound from under 0.6700 and is it about to end the week with gains. Most important, it is avoiding a weekly close below 0.6770 that would have been the lowest since 2020, opening the doors to fresh lows.

Inflation and employment

Two critical reports are due next week for the AUD/USD pair. In the US, will be August inflation on Tuesday. The figures will have critical implications for market expectations regarding the next Federal Reserve meeting. Powell remained hawkish during the week, although a slowdown in the annual inflation rate could start to alleviate rate hike expectations, not necessarily for the September FOMC meeting.

On Thursday, Australian labor market data will be released. After a disappointment in July, the August report is expected to show an improvement. Market consensus is for a 35K increase in jobs. Another weak number could weigh on the aussie, as market participants would see more likely a 25 basis points rate hike from the Reserve Bank of Australia, rather than a larger increase.

AUD/USD weekly chart

Technical levels

AUD/USD

Overview
Today last price	0.6848
Today Daily Change	0.0097
Today Daily Change %	1.44
Today daily open	0.6751

Trends
Daily SMA20	0.6888
Daily SMA50	0.6895
Daily SMA100	0.6973
Daily SMA200	0.7117

Levels
Previous Daily High	0.6774
Previous Daily Low	0.6713
Previous Weekly High	0.7074
Previous Weekly Low	0.6771
Previous Monthly High	0.7137
Previous Monthly Low	0.6835
Daily Fibonacci 38.2%	0.6736
Daily Fibonacci 61.8%	0.6751
Daily Pivot Point S1	0.6718
Daily Pivot Point S2	0.6685
Daily Pivot Point S3	0.6657
Daily Pivot Point R1	0.6779
Daily Pivot Point R2	0.6807
Daily Pivot Point R3	0.684

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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