- A hawkish rate cut by the Fed triggered some corrective slide on Wednesday.
- The downfall accelerated further following the release of the Aussie jobs report.
The AUD/USD pair maintained its heavily offered tone through the early European session on Thursday and is currently placed near the lower end of its daily trading range, or over two-week lows.
After repeatedly failing ahead of the 0.6900 handle, the pair on came under some fresh selling pressure on Wednesday after the latest FOMC policy statement suggested that the US central bank is already done with its mid-cycle adjustments.
The Fed did deliver a 25 bps rate cut but the so-called dot-plot showed that the median projections of federal funds rate is expected to remain at present levels through the end of 2020 and provided a goodish intraday lift to the US Dollar.
Disappointing Aussie jobs data adds to the post-FOMC downfall
The downfall accelerated further on Thursday following the release of rather unimpressive Aussie jobs data, which showed that the unemployment rate ticked higher to 5.3% in August as compared to the previous month's reading of 5.2%.
Meanwhile, the headline data showed that the number of employed people increased by 34.7K in August but the fact that full-time employment dropped to -15.5K disappointing investors and exerted some additional pressure on the major.
The pair dropped to its lowest level since September 4, albeit now seems to have found some support near the 0.6780-75 horizontal resistance breakpoint amid the lack of any follow-through buying interest around the greenback.
Moving ahead, Thursday's US economic docket - featuring the release of initial weekly jobless claims and Philly Fed Manufacturing Index - will now be looked upon for some short-term trading opportunities.
Technical levels to watch
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.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.