AUD/USD Analysis: Resilience Amid Economic Challenges
AUD/USD Awaits Non-Farm Payrolls: Stability Amid Global Risks and Economic Uncertainty.
The Australian dollar (AUD) and the U.S. dollar (USD) were both in a holding pattern as traders eagerly awaited the release of the U.S. non-farm payrolls data on Friday. This crucial economic data could potentially have significant implications for interest rates and bond markets.
The AUD/USD pair was relatively stable, with AUDUSD trading at $0.6375. It had recently experienced a slight rebound of 0.7% to $0.6377, moving away from its 11-month low of $0.6286. However, it was still down by 0.9% for the week, with a resistance level seen at around 64 cents.
Meanwhile, the Reserve Bank of Australia’s semi-annual Financial Stability Review highlighted elevated global risks, including concerns about stress in China’s property sector. Despite these global challenges, Australian households and businesses have shown resilience in the face of economic uncertainties.
Economist Stephen Wu from the Commonwealth Bank of Australia pointed out that the RBA, like many others, emphasizes the significance of employment for the resilience of households. A sharp increase in unemployment could potentially test the ability of households to withstand economic challenges.
Looking at the daily price action of AUD/USD, it has not yet reached the swing lows of November 2022 at 0.6272. Instead, there has been a push higher in recent trading sessions. The Relative Strength Index (RSI) is showing higher lows compared to prices, indicating positive and bullish divergence. This divergence could suggest the possibility of further upside movement in the near future. However, the direction of AUD/USD remains highly dependent on the outcome of the upcoming non-farm payrolls report.
Aud/Usd Technical Analysis Daily Chart:
Technical Overview
Key resistance levels to watch for in AUD/USD include: R1 0.6500, R2 0.6459
Trendline resistance at an appropriate level: 0.6358
On the other hand, key support is found at: 0.6272
HOW TO TRADE NZD/USD
As traders await the release of the non-farm payroll data, the AUD/USD pair is expected to remain in a cautious and relatively stable position, with the potential for significant movements based on the outcome of this important economic indicator.
TRADE SUGGESTION
Given the uncertainty surrounding the outcome of the non-farm payroll data, it is not recommended to enter a new trade in the AUD/USD pair at this time. However, traders may want to consider placing orders to buy above the 0.6500 resistance level or sell below the 0.6272 support level, depending on their expectations for the outcome of the non-farm payroll data.