Forex News

AUD/USD walks water above 0.7600

AUD/USD walks water above 0.7600
  • AUD/USD clings to the consolidative mood above 0.7600.
  • Support comes in at the YTD lows near 0.7530(Thursday).
  • US NFP is looking forward to being in the limelight later on Friday.

The Aussie Dollar alternates gains with losses vs its American Counterpart, leaving the price movement around AUD/USD side-lined over the 0.7600 yardsticks on Good Friday.

AUD/USD continues the side-lined theme above the 0.7600 level against the backdrop of the more generalized rangebound mood prevailing in the global markets on Good Friday Trading.

AUD managed to repeal Thursday’s pullback to fresh yearly lows in the 0.7530 zones and ended the session slightly on the positive area. 

Less auspicious outcomes from the Australian docket seem to have weighed on the currency earlier in the week following a small drop in the production PMI in March (from56.9 to 56.8) narrowing trade surplus in February, a monthly contraction in Home Loans and the 0.3% drop in Retail sales from a month earlier, also in February. 

Moving forward announcement of March’s US Nonfarm Payrolls later in the NA session is required to bring in the potential bouts of volatility in spot amidst the prevailing marginal trading conditions, as most markets are closed on Good Friday. 

What to look for around AUD:-

The Aussie Dollar gathered some buying interest following 2021 lows near 0.7500 on Wednesday. In the meantime, price action around AUD remains dominated by Dollar dynamics plus the performance of commodity prices, particularly iron ore. However, the dovish stance from RBA looks forward to keeping gains in the currency somewhat capped helped by special corrections in the commodity space. It is worth reviving that the central bank looks forward to keeping interest rates at current levels until at least 2024, while it is determined to rise to remain subdued for the time being. 

Key Events in Australia next week:-

RBA interest rate decision (Tuesday)- Building Approvals, RBA’s Financial Stability Review(Friday)

Important issues on the Back Boiler

 China-Australia trade/political action- Is a bubble shaping up in the Australian housing market?- Economic recovery amidst the vaccine rollout- Sustainability of the rally in iron ore- RBA remains vigilant on unwelcomed AUD appreciation.

AUD/USD levels to watch:– 

At the time, the pair is retreating 0.07% at 0.7610 and faces the next support at 0.7531 (2021 low Apr.1) seconded by 0.7783(200-day SMA) and then 0.7000 (round level). On the upside, a break above 0.7664(weekly high Mar.30) would expose 0.7717 (50-day SMA) and finally 0.7849 (monthly high Mar.18).