AUD/USD Surges to Weekly High of 0.6642 on Upbeat Australian Employment Data
- Australian monthly employment report shows addition of 58.2K new jobs in July.
- Reserve Bank of Australia Governor Michele Bullock set to testify before Congress.
- Global stocks maintain firm tone, supporting AUD/USD despite US Dollar demand.
The AUD/USD pair reached a weekly high of 0.6642 after starting the day at 0.6567. The surge was driven by the release of positive Australian employment data, with 58.2K new jobs added in July. Despite a rise in Unemployment Rate to 4.2%, market sentiment remains positive due to the strong job growth. Additionally, Consumer Inflation Expectations rose to 4.5% in August.
Reserve Bank of Australia (RBA) is likely to maintain its current monetary policy stance, providing further support for the Aussie. The upcoming appearance of RBA Governor Michele Bullock will be closely watched for any hints on future policy decisions. In the US, the release of Michigan Consumer Sentiment Index and Consumer Inflation Expectations will also impact market sentiment.
Technical Outlook for AUD/USD
On a technical front, the AUD/USD pair is poised for further gains. Daily indicators are positive, with the pair finding support at the 20 SMA. However, the 200 SMA is acting as resistance around 0.6640. In the short term, a break below 0.6570 could increase bearish pressure.
Support: 0.6600, 0.6570, 0.6530
Resistance: 0.6640, 0.6675, 0.6710
Overall, positive Australian employment data and RBA’s monetary policy stance are supporting AUD/USD. Global market sentiment and upcoming economic data releases will continue to influence the pair’s movement. Traders should monitor key support and resistance levels for potential trading opportunities.