• US November’s Nonfarm Payrolls crushed estimates, and wages rose.
  • The US Dollar reclaimed the 105.000 mark, underpinned by high US bond yields.
  • RBA’s Lowe: “Australia’s inflation expectations well anchored.”

The Australian Dollar (AUD) dropped against the US Dollar (USD) following the release of a positive employment report in the United States (US) which showed an increase in wages, pressuring the Federal Reserve (Fed) to take action. At the time of writing, the AUD/USD is trading at 0.6771 after hitting a daily high of 0.6832.

Positive US jobs data bolstered the US Dollar

US stocks are trading with losses after November’s US Nonfarm Payrolls (NFP) report. Data showed that the economy added 263,000 new jobs, and October’s was upward revised 284,000 jobs, the Department of Labor (DoL) report showed. In the same statement, the Unemployment Rate was unchanged at 2.7%, while Average Hourly Earnings rose by 5.1% YoY, vs. 4.6% consensus, reigniting wage inflation spirals, adding further pressure on the Fed.

The US Dollar Index (DXY), which tracks the greenback’s performance against six currencies, stages a recovery, gaining 0.49%, up at 105.234, underpinned by US Treasury yields. The US 10-year Treasury bond yield rises nine bps, at 3.599%.

Thursday, the Institute for Supply Management (ISM) revealed that November’s manufacturing activity in the US shrank to 49.0 from 50.2 in the previous month. The figures reignited recession fears, as the report showed new orders are falling, demand eased, and the employment index contracted. Therefore, investors’ mood dwindled, as demonstrated by US equities finishing the session with losses.

Meanwhile, Federal Reserve Chairman Jerome Powell opened the door for lower-sized rate hikes, reinforcing the latest meeting minutes sentence that “a substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate.” On those remarks, the AUD/USD hit a fresh three-month high, though the rally stalled, on the US ISM report.

Earlier, during the Asian session, the Australian economic docket featured the release of Retail Sales for October, which shrank 0.2% MoM, vs. 0.6% expansion, while housing data remained in negative territory but was better-than-expected. Also, the Reserve Bank of Australia (RBA) Governor Philippe Lowe said that inflation expectations in Australia are “well anchored.” He added that domestic spending remains resilient amidst higher interest rates, and the RBA’s decision to moderate rate hikes reflects monetary policy lags.

AUD/USD Key Technical Levels

AUD/USD

Overview
Today last price 0.677
Today Daily Change -0.0043
Today Daily Change % -0.63
Today daily open 0.6813
 
Trends
Daily SMA20 0.666
Daily SMA50 0.6494
Daily SMA100 0.6688
Daily SMA200 0.6926
 
Levels
Previous Daily High 0.6845
Previous Daily Low 0.6782
Previous Weekly High 0.6781
Previous Weekly Low 0.6585
Previous Monthly High 0.6801
Previous Monthly Low 0.6272
Daily Fibonacci 38.2% 0.6821
Daily Fibonacci 61.8% 0.6806
Daily Pivot Point S1 0.6781
Daily Pivot Point S2 0.675
Daily Pivot Point S3 0.6718
Daily Pivot Point R1 0.6845
Daily Pivot Point R2 0.6877
Daily Pivot Point R3 0.6908

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

AUD/USD struggles below 0.6300 amid trade war fears

AUD/USD struggles below 0.6300 amid trade war fears

AUD/USD remains defensive below the 0.6300 mark in Thursday's Asian trading. The pair is undermined by increased concerns over a potential global trade war as US reciprocal tariffs could come by later in the day. Rising Australian inflation expectations and US Dollar weakness cap the pair's downside. 

AUD/USD News
USD/JPY drops back toward 154.00 amid stronger Japanese PPI data

USD/JPY drops back toward 154.00 amid stronger Japanese PPI data

USD/JPY fails to sustain at higher levels and falls back toward 154.00 in the Asian session on Thursday. The pair remains weighed down by a stronger Japanese PPI report, which reaffirmed BoJ rate hike bets. The pair also bears the brunt of a subdued US Dollar despite trade war fears and hawish Fed expectations. 

USD/JPY News
Gold remains a ‘buy-the-dip’ trade on tariff war fears

Gold remains a ‘buy-the-dip’ trade on tariff war fears

Gold price is trying to hold above the $2,900-mark early Thursday, having witnessed intense volatility a day ago. The focus once again remains on the US fundamentals and US President Donald Trump’s tariff plans for a fresh boost to Gold prices.

Gold News
Bitcoin and crypto recovers from CPI data as Trump pushes Russia–Ukraine diplomacy

Bitcoin and crypto recovers from CPI data as Trump pushes Russia–Ukraine diplomacy

Bitcoin and the crypto market saw slight gains on Wednesday after President Donald Trump's resolution calls with Russian President Vladimir Putin and Ukraine's President Volodymyr Zelenskyy. 

Read more
How the European Union could counter US tariffs

How the European Union could counter US tariffs

With Trump ordering a 25% import tax on all steel and aluminium entering the US, trade tensions are inching closer to Europe. We take a closer look at how European policymakers could react. Spoiler alert: it's complicated.

Read more
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025