• AUD/USD pauses the latest pullback from 100-DMA, weekly top.
  • US-China top diplomats brace for the first meeting of 2022, US Treasury Secretary Yellen expects inflation to ease soon.
  • US data weighed on yields, USD contrast to Aussie jobs report, inflation figures that favored AUD.
  • Cautious mood to restrict pair’s performance amid light calendar ahead of next week’s FOMC.

AUD/USD hovers around 0.7220 following a U-turn from the weekly top around the 100-DMA. That said, the Aussie pair struggles for a clear direction but stays on the way to post the second consecutive weekly upside during early Friday morning in Asia.

The risk barometer pair cheered strong Aussie employment figures and Inflation expectations, for December and January respectively, during the initial Thursday. The People’s Bank of China (PBOC) surprised markets with a first cut in the 5-year Loan Prime Rate (LPR), by 5 basis points (bps) to 4.60%, in 21 months and helped AUD/USD as well.

The up-moves gained additional support after the US Philadelphia Fed Manufacturing Survey eased and jobless claims jumped to the three-week high, allowing Fed to have some leeway in its fight with the inflation, as recently signaled by US Treasury Secretary Janet Yellen.

Also on the positive side was the latest news from the South China Morning Post (SCMP) suggesting the US-China diplomatic talks after an abrupt rejection of the same on January 10.

Australia’s Unemployment Rate dropped to the 14-year low of 4.2% while the Employment Change also rose past expectations to keep the Aussie policymakers optimistic, which in turn propelled AUD/USD. On the other hand, the US Jobless Claims jumped to the highest since late October and the Philadelphia Fed Manufacturing Survey details also improved for January.

Elsewhere, US Treasury Secretary Yellen recently said in the CNBC interview that Inflation rose by more than most economists, including me, expected and of course, it's our responsibility with the Fed to address that. And we will. Additionally, SCMP signaled that China’s Yang Jiechi and US national security adviser Jake Sullivan are up for a crunch meeting but no date was indicated.

Amid these plays, the US 10-year Treasury yields posted a second consecutive daily loss after refreshing the two-year high on Wednesday. The same weighed on the US Dollar Index (DXY) and propelled gold prices, allowing Antipodeans to cheer the risk-on mood.

Although the recent signals hint at the US Federal Reserve’s (Fed) cautious approach in tacking the jump in inflation, the Fed policymakers are up for a fight and hence market players may remain divided ahead of the next week’s key meeting. The same joins a light calendar to restrict moves of the risk barometer pair AUD/USD for a short-term.

Read: Forex Today: Dollar hit by poor employment figures

Technical analysis

Sustained U-turn from the seven-week-old support line, around 0.7180 by the press time, joins firmer RSI to direct AUD/USD towards the 100-DMA level surrounding 0.7280, also helping it cross.

However, the quote’s further advances will be challenged by the monthly high of 0.7315 and the previous support line from August near 0.7350.

Additional important levels

Overview
Today last price 0.7228
Today Daily Change 0.0011
Today Daily Change % 0.15%
Today daily open 0.7217
 
Trends
Daily SMA20 0.7225
Daily SMA50 0.7196
Daily SMA100 0.7283
Daily SMA200 0.7418
 
Levels
Previous Daily High 0.7239
Previous Daily Low 0.7176
Previous Weekly High 0.7315
Previous Weekly Low 0.7148
Previous Monthly High 0.7278
Previous Monthly Low 0.6993
Daily Fibonacci 38.2% 0.7215
Daily Fibonacci 61.8% 0.72
Daily Pivot Point S1 0.7182
Daily Pivot Point S2 0.7147
Daily Pivot Point S3 0.7119
Daily Pivot Point R1 0.7246
Daily Pivot Point R2 0.7274
Daily Pivot Point R3 0.7309

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

When is Australia Retail Sales and how could the data affect AUD/USD?

When is Australia Retail Sales and how could the data affect AUD/USD?

AUD/USD remains sidelined around 0.7100, marking the third lackluster day ahead of the key Aussie data. The pair’s latest moves fail to cheer a softer US dollar amid market anxiety, as well as fears of global recession due to China’s covid-led lockdowns and the Russia-Ukraine crisis.

AUD/USD News

EUR/USD approaches 1.0750 key hurdle ahead of US PCE Inflation

EUR/USD approaches 1.0750 key hurdle ahead of US PCE Inflation

EUR/USD grinds higher around the weekly top, as well as monthly high, recently steady around 1.0735 as bulls await fresh clues during a lackluster Asian session on Friday. Shrinking Fed vs. ECB divergence appears the key catalyst to recall bulls, highlighting US PCE Price Index for April.

EUR/USD News

Gold bounces from $1,850, DXY remains soft on soaring market mood

Gold bounces from $1,850, DXY remains soft on soaring market mood

Gold price (XAU/USD) witnessed a minor pullback towards $1,850.00 in its initial trading hours but has bounced back sharply. The precious metal is displaying a balance auction in a range of $1,840.76-1,856.35 from Wednesday.

Gold News

Will Cardano price finally show its cards?

Will Cardano price finally show its cards?

Cardano price is preparing for a retest of $0.80. Still, jumping in early might be too risky. Traders should wait for confirmation signals.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures