- AUD / USD continues to consolidate just above 0.7600.
- Support is at yearly lows near 0.7530 set on Thursday.
- The US NFP is expected to come into the spotlight later on Friday.
The Australian dollar alternates gains and losses against its US counterpart, leaving price action around the AUD / USD consolidating just above the round level of 0.7600 good Friday.
AUD / USD recovers from yearly lows near 0.7530
AUD / USD extends the consolidation move above the 0.7600 level against the background of a Overall range sentiment in global markets amid Good Friday holiday.
AUD / USD managed to reverse Thursday’s pullback to fresh yearly lows at the 0.7530 zone and closed the session slightly in positive territory.
Less optimistic results in Australian economic data appear to have weighed on the AUD after the small drop in the manufacturing PMI in March (from 56.9 to 56.8), the contraction of the trade surplus in February, a monthly contraction in mortgage loans and the 0.3% drop in retail sales compared to the previous month.
Turning to US data, the release of the March US NFP nonfarm payroll report is expected to trigger potential bouts of volatility in the pair at the start of the US session, amid already tight trading conditions. that most markets are closed on Good Friday.
What can we expect around the AUD?
The Australian dollar gained some buying interest after falling to 2021 lows near 0.7500 on Wednesday. Meanwhile, price action around the AUD remains dominated by the dynamics of the US dollar plus the behavior of commodity prices, particularly iron ore. However, the RBA’s dovish stance is expected to keep AUD gains somewhat limited. It is worth remembering that the central bank is expected to keep interest rates at current levels until at least 2024, while forecasting that inflation will remain subdued for the time being.
AUD / USD levels
At the time of writing, the AUD / USD pair is down 0.07% on the day, trading at 0.7610. The next support is at 0.7531 (April 1 low), followed by 0.7383 (200-day SMA) and 0.7000 (round level). On the upside, a break above 0.7664 (March 30 high), would expose 0.7717 (50-day SMA) and finally 0.7849 (March 18 high).
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