AUD/USD treads water above 0.7600


  • AUD/USD sticks to the consolidative mood above 0.7600.
  • Support comes in at the YTD lows near 0.7530 (Thursday).
  • US NFP expected to be in the limelight later on Friday.

The Aussie dollar alternates gains with losses vs. its American counterpart, leaving the price action around AUD/USD side-lined above the 0.7600 yardstick on Good Friday.

AUD/USD rebounds from YTD lows near 0.7530

AUD/USD extends the side-lined theme above the 0.7600 level against the backdrop of the more generalized rangebound mood prevailing in the global markets on Good Friday trading.

AUD managed to reverse Thursday’s pullback to fresh yearly lows in the 0.7530 zone and closed the session slightly on the positive territory.

Less auspicious results from the Australian docket appear to have weighed on the currency earlier in the week following the small drop in the manufacturing PMI in March (from 56.9 to 56.8), shrinking trade surplus in February, a monthly contraction in Home Loans and the 0.3% drop in Retail Sales from a month earlier, also in February.

Moving forward, the release of March’s US Nonfarm Payrolls later in the NA session is expected to bring in potential bouts of volatility in spot amidst the prevailing marginal trading conditions, as most markets are closed on Good Friday.

WHAT TO LOOK FOR AROUND AUD

The aussie dollar gathered some buying interest following 2021 lows near 0.7500 on Wednesday. In the meantime, price action around AUD remains dominated by dollar dynamics plus the performance of commodity prices, particularly iron ore. However, the dovish stance from the RBA is expected to keep gains in the currency somewhat capped helped by occasional corrections in the commodity space. It is worth recalling that the central bank is expected to keep interest rates at current levels until at least 2024, while it forecast inflation to remain subdued for the time being.

Key events in Australia next week: RBA interest rate decision (Tuesday) – Building Approvals, RBA’s Financial Stability Review (Friday).

Eminent issues on the back boiler: China-Australia trade/political effervescence - Is a bubble shaping up in the Australian housing market? – Economic recovery amidst the vaccine rollout – Sustainability of the rally in iron ore – RBA remains vigilant on unwelcomed AUD appreciation.

AUD/USD levels to watch

At the moment the pair is retreating 0.07% at 0.7610 and faces the next support at 0.7531 (2021 low Apr.1) seconded by 0.7383 (200-day SMA) and then 0.7000 (round level). On the upside, a break above 0.7664 (weekly high Mar.30) would expose 0.7717 (50-day SMA) and finally 0.7849 (monthly high Mar.18).

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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD falls toward 1.20 as the dollar gains further ground

EUR/USD is under pressure as the dollar gains ground across the board, amid a damp market mood. The euro fails to benefit from the European regulators' decision to reinstate the J&J vaccine.

EUR/USD News

GBP/USD remains pressured below 1.3950 amid mixed UK data

GBP/USD is trading below 1.3950, extending the pullback from its seven-week highs. The dollar benefits from the risk-off mood, while the pound struggles after CPI missed with 0.7% and as UK PM Johnson warns of winter covid wave.

GBP/USD News

Gold likely to face stiff resistance near $1795-$1800, focus on yields

Gold (XAU/USD) rebounded on Tuesday as the US Treasury yields tumbled alongside global stocks. Surging covid infections globally brought a reality check into the markets and triggered a fresh risk-aversion wave.

Gold News

Binance needs to breach this crucial supply barrier to set up record levels again

Binance Coin price shows a short-term rejection around the supply zone’s upper layer at $594.32. A close above the said level is a must if BNB bulls want to scale to new highs. Supply distribution shows that whales holding between 100,000 to 1,000,000 BNB are accumulating.

Read more

Bank of Canada Preview: Dovish surprise to lift USD/CAD

Bank of Canada is expected to leave its policy unchanged at 0.25%. Investors await adjustments to BoC’s asset-buying program. USD/CAD is likely to react more significantly to a dovish surprise.

Read more

Forex MAJORS

Cryptocurrencies

Signatures