The AUD/USD pair saw a notable increase of 0.45% on Thursday, reaching a level of 0.6630. Despite a rise in Australia’s Unemployment Rate in July, positive labor market data and the Reserve Bank of Australia’s (RBA) hawkish position are providing support to the Australian Dollar (AUD).
The RBA’s consistent hawkish stance, combined with a mixed economic outlook and rising inflation, has led to market expectations of minimal easing in interest rates by 2024.
Market Update: AUD/USD Thrives Despite Soft Unemployment Data
- Thursday saw a strong performance from the AUD/USD pair, despite a slight increase in the Unemployment Rate to 4.2%.
- Australian Employment Change and Full-Time Employment figures exceeded expectations, contributing to the AUD’s resilience.
- The RBA’s hawkish stance positions it as potentially the last G10 central bank to implement rate cuts, contrasting with the Federal Reserve’s (Fed) easing policies.
Technical Analysis: AUD/USD Shows Resilience with Neutral to Bullish Outlook
Technical indicators for the AUD/USD pair show a neutral momentum, with the RSI hovering around 54 and the MACD displaying flat green bars. Key support levels are identified at 0.6560 and 0.6500, while resistance is seen near 0.6640 and 0.6600, where the 100 and 200-day SMAs converge.
Overall, the AUD/USD pair’s performance is influenced by a combination of economic data, central bank policies, and market trends, pointing to potential opportunities for investors and traders in the coming months.
