- AUD/USD edges higher around multi-day top as 50-DMA, key horizontal hurdle challenge bulls.
- Fears of softer US jobs report recede tapering tantrums, EUR strength adds to the greenback’s fall.
- Aussie GDP, covid data also tried to please bulls.
- Australia Trade Balance, US jobs related data to decorate calendar.
AUD/USD bulls take a breather around 0.7360–65 during early Thursday morning in Asia, after refreshing a three-week top on downbeat USD and risk-on mood the previous day. The Aussie pair traders currently await Australia trade numbers for July, up for publishing around 01:30 GMT, as buyers attack 50-DMA.
The risk barometer pair jumped the most in the current week on Wednesday as early signals for Friday’s US employment data hints at disappointment, which in turn tame the Fed’s tapering chatters. That said, the ADP Employment Change for August rose 374K versus expectations of a 613K rise. Also challenging the jobs scenario was the employment component of the ISM Manufacturing PMI that slumped to the contraction region with the 49.0 figures against 52.9 prior.
On the other hand, Australia’s AiG Performance of Manufacturing PMI came in at 51.6 in August, indicating expansion despite the ongoing lockdowns in the country. The Commonwealth Bank Manufacturing PMI rose past expectations of 51.7 to 52 whereas the Q2 Gross Domestic Product (GDP) resulted at 0.7% QoQ and 9.6% YoY, beat market expectations. It should be noted that China’s Caixin Manufacturing PMI slumped to the contraction region with 49.2 figures versus 50.2 expected and 50.3 prior.
Elsewhere, Australia’s second-most populous state Victoria marked record infections the previous day but couldn’t push the national count towards refreshing the all-time high of 1,380. The reason could be linked to the softening of data from the largest state New South Wales.
The virus numbers are again on the spike and pose challenges to the market sentiment. Recently, the World Health Organization (WHO) is said to observe another variant of the COVID-19, namely Mu, which resists vaccine.
Other than the stated data and virus updates, escalating odds of the European Central Bank (ECB) tapering, recently propelled by Bundesbank President Jens Weidmann, also weigh on the US dollar. That said, the US Dollar Index (DXY) dropped to the fresh low since August 06 the previous day.
Amid these plays, the Wall Street benchmarks closed mixed, after a downbeat day, whereas the US 10-year Treasury yields eased 0.3 basis points (bps) to 1.299% by the end of Wednesday’s North American session.
While risk-on mood and more proofs of US jobs weakness can help the AUD/USD to refresh multi-day tops, today’s Australian Trade Balance for July, expected 10200M versus 10496M prior, will act as a nearby important catalyst. Following that, second-tier US employment data like Nonfarm Productivity for Q2 and weekly jobless claims will be crucial to follow. Above all, this week’s US Nonfarm Payrolls (NFP) and covid updates keep the driver’s seat.
A clear upside break of a 10-week-old falling trend line and bullish MACD signals back AUD/USD buyers to battle 50-DMA around 0.7385. Also challenging the bulls is a year-old horizontal resistance, 0.7410-15.
Additional important levels
|Today last price||0.7367|
|Today Daily Change||0.0052|
|Today Daily Change %||0.71%|
|Today daily open||0.7315|
|Previous Daily High||0.7342|
|Previous Daily Low||0.7288|
|Previous Weekly High||0.7318|
|Previous Weekly Low||0.7119|
|Previous Monthly High||0.7427|
|Previous Monthly Low||0.7106|
|Daily Fibonacci 38.2%||0.7321|
|Daily Fibonacci 61.8%||0.7308|
|Daily Pivot Point S1||0.7288|
|Daily Pivot Point S2||0.726|
|Daily Pivot Point S3||0.7233|
|Daily Pivot Point R1||0.7342|
|Daily Pivot Point R2||0.7369|
|Daily Pivot Point R3||0.7397|
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.