The AUD/USD pair is on the rise, gaining around 60 pips despite mixed Australian jobs and Chinese macro data. The Australian Dollar gets a boost after adding 58,000 new jobs in July, surpassing expectations. Although the Unemployment Rate ticked up slightly, the labor market remains tight, supporting the Reserve Bank of Australia’s hawkish stance.
On the other hand, the US Dollar remains subdued amid Fed rate cut bets, contributing to the positive move. The US Consumer Price Index report showed a downward trend in inflation, reinforcing expectations of a Fed rate cut in September. This, along with a positive risk tone, further supports the AUD/USD pair’s upward momentum.
While Chinese macro data showed mixed results, concerns about a downturn in the economy may cap gains for the pair. However, the overall fundamental backdrop suggests a bullish outlook for the AUD/USD pair in the near term.
From a technical standpoint, the breakout through the 200-day SMA and positive oscillator movements indicate a bullish bias. The pair is poised to surpass recent highs and potentially reach the 0.6700 mark. On the downside, support levels are seen near 0.6565 and 0.6520, with further support at 0.6500.
Overall, the AUD/USD pair is likely to continue its upward trend, with potential short-term opportunities driven by US economic data and market sentiment. Traders should monitor key levels and technical indicators for potential trading opportunities.
Analysis by: [Your Name] – Leading Investment Manager and Financial Market Analyst