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AUD/USD recovers above 0.6400 as US Dollar falls

  • AUD/USD holds on to gains above 0.6400 as market sentiment improves.
  • The attractiveness of risk assets improved after reports from Iran indicated that the Isfahan attack had been exaggerated.
  • Weak Australian employment data positively influences speculation about an early RBA rate cut.

The AUD/USD pair maintains gains above the support of the 0.6400 round level in the early hours of the session on Friday. AUD/USD recovers as fears of a further escalation of tensions in the Middle East subside, after Iran reported that the drone attack did not damage the Isfahan nuclear facilities. Furthermore, Israel's attack, which has not been confirmed by them but has been confirmed by US officials, appeared to be limited in size. Meanwhile, Iran said it has no plans for immediate retaliation.

Market sentiment turns optimistic as the attractiveness of risk assets improves. The S&P 500 experiences buying interest at the opening and recovers the losses recorded in the European session. The yield on the 10-year US Treasury bond falls to 4.62% even though Federal Reserve (Fed) policymakers have been supporting higher interest rates for longer.

Fed policymakers have been arguing that they are comfortable with higher interest rates because demand for labor is robust and wages are rising. They have warned that the progress of inflation towards the 2% objective is less than expected.

The US Dollar Index (DXY) hovers around 106.00 as the attractiveness of risk assets improves. The near-term outlook for the US dollar remains strong due to the encouraging US economic outlook.

Meanwhile, weak Australian employment data for March has reinforced speculation about an early rate cut by the Reserve Bank of Australia (RBA). According to the Australian Bureau of Statistics, employers laid off 6,600 workers compared to expectations of new hires of 7,200. In February, 117,600 people were hired, a figure revised slightly upward from 116,500. The unemployment rate rose to 3.8% from 3.7%, but remained below estimates of 3.9%.

AUD/USD

Overview
Latest price today 0.6421
Today Daily Change -0.000
Today's daily change -0.02
Today daily opening 0.6422
Trends
daily SMA20 0.6517
50 daily SMA 0.6536
SMA100 daily 0.6594
SMA200 Journal 0.6536
Levels
Previous daily high 0.6456
Previous daily low 0.6416
Previous weekly high 0.6644
Previous weekly low 0.6456
Previous Monthly High 0.6667
Previous monthly low 0.6478
Daily Fibonacci 38.2 0.6432
Fibonacci 61.8% daily 0.6441
Daily Pivot Point S1 0.6406
Daily Pivot Point S2 0.6391
Daily Pivot Point S3 0.6366
Daily Pivot Point R1 0.6447
Daily Pivot Point R2 0.6472
Daily Pivot Point R3 0.6487

Source: Fx Street

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