- The aussie recovers 2.5% on the day and hits session highs at 0.6470.
- Risk appetite and a mixed US jobs report have buoyed the AUD.
- AUD/USD capped below a major resistance zone at 0.6470/0.6525.
The aussie is making an extraordinary recovery on Friday, rising 2.5% on the day amid favorable market sentiment, to recoup most of the losses of the previous six days. The pair bounced off the 0.6280 area early on Friday to hit highs of 0.6475 during the midday US session, before consolidating above 0.6425.
US Dollar Falls After Mixed Non-Farm Payrolls Report
US employment figures have shown mixed readings in October, adding to the weakness of an already vulnerable US dollar as risk appetite returned to markets. European equity markets have closed with gains of over 2%, while the main US stock indices are mixed in afternoon trading after a strongly positive open.
Non-distant private employment rose by 261,000 in October, beating expectations of 200,000, while September’s figures were revised to 315,000, from 264,000 previously estimated.
Investor enthusiasm for the good jobs data has been offset by the higher-than-expected unemployment rate, which rose to 3.7% from 3.5% in September, beating consensus of a 3.6% reading, and the slowdown in hourly wages, down 4.7% in October from 5% in September.
These latest figures suggest labor market conditions may finally be softening, dampening expectations of a more aggressive Fed tightening and increasing downward pressure on the dollar.
AUDUSD has reached a major resistance at 0.6470
The four-hour chart shows that Friday’s strong recovery has brought the pair to a major resistance zone between 0.6470 and 0.6520.
The bullish crossover seen between the 50-200 SMA heralds the possibility of further appreciation, although with the pair reaching overbought levels on the hourly charts, some hesitation seems likely before the pair breaks. resume the upward path.
AUDUSD 4 hour chart
Technical levels to watch
|last price today||0.6444|
|Today I change daily||0.0154|
|Today’s daily variation in %||2.45|
|Daily opening today||0.629|
|Previous daily high||0.6372|
|Previous Daily Low||0.6272|
|Previous Weekly High||0.6522|
|Previous Weekly Low||0.6272|
|Previous Monthly High||0.6548|
|Previous Monthly Low||0.617|
|Daily Fibonacci of 38.2%||0.631|
|Daily Fibonacci of 61.8%||0.6334|
|Daily Pivot Point S1||0.6251|
|Daily Pivot Point S2||0.6211|
|Daily Pivot Point S3||0.6151|
|Daily Pivot Point R1||0.6351|
|Daily Pivot Point R2||0.6411|
|Daily Pivot Point R3||0.6451|
Source: Fx Street