AUD/USD Declines on Strong US Data, Australian Employment Boost Fades
AUD/USD retreated to daily lows near the 0.6580s during the US session as strong US economic data bolstered the US Dollar (USD). This move reversed an earlier AUD rally driven by unexpectedly positive Australian employment figures.
Key Factors:
- US Data Strength: Positive readings in US PMIs, Initial Jobless Claims, and the Philadelphia Fed Manufacturing Index supported the USD.
- Aussie Employment Fades: The initial boost from Australia's robust employment data, with falling unemployment and stronger-than-expected job growth, failed to sustain the AUD's momentum.
- RBA Implications: While positive for the Australian economy, the jobs data suggests the Reserve Bank of Australia (RBA) may need to maintain higher interest rates for longer to curb wage inflation.
Technical Outlook:
- Rangebound Trading: AUD/USD oscillates within a range between roughly 0.6480 and 0.6650.
- Bearish Turnaround: The pair is facing pressure near the range highs, increasing the likelihood of a sell-off. A continued decline could push AUD/USD back to the lower end of the range.
- Bullish Signal: A break above the 0.6668 highs would confirm a higher high and indicate a potential short-term bullish trend.