- The Dollar Index falls after the US economic data.
- Stocks are trading higher on Thursday, with the Nasdaq leading up 1.40%.
- AUD/USD rises almost a hundred points and is close to 0.6800.
The pair AUD/USD gained momentum after the US data release and continued to rise during the US session amid risk appetite. The pair is around 0.6778, its highest level since April 4.
Earlier on Thursday, Australia’s Employment report surprised with an increase of 53,000 jobs in March, above the market consensus of 20,000. ANZ analysts do not believe this is enough for the Reserve Bank of Australia to “raise the cash rate again in May, given its reason for pausing in April: to assess the impacts of the cumulative 350bp of hikes delivered so far, given the long lapses in monetary policy.”
The Australian dollar rose slightly on the jobs report, and the AUD/USD pair rallied back above 0.6700. The recovery followed the release of US economic data, in which wholesale inflation fell more than expected in March and jobless claims pointed to a weaker labor market. These figures triggered a sell-off in dollars and boosted risk appetite.
The backdrop on Thursday favors commodity currencies. AUD/USD is up almost a hundred points and NZD/USD has broken above 0.6300.
Looking at 0.6800
AUD/USD is trading at 0.6776, the highest level in a week, and is testing the 55-day SMA. If it breaks above, the focus would be on the 0.6800 area.
The technical picture looks constructive for the Australian dollar in the near term. A drop below 0.6600 would strengthen the US dollar.
technical perspective
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
