AUD/USD Climbs After Fed’s Decision, Ahead Of Aussie’s Job Data

10 and one 10 us dollar bill

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  • AUD up 0.83% vs. USD after Fed holds policy steady.
  • Wall Street up, praises US economy, labor strength post-Fed.
  • US 10-year yield dips, Dollar Index down, hints AUD/USD rise.
  • Mixed Australia PMI, strong job outlook may sway RBA policy.

The Australian Dollar soared 0.83% against the US Dollar on Wednesday as the Federal Reserve held rates steady while maintaining their monetary policy outlook from last year, with 75 basis points (bps) of rate cuts in 2024. As the Asian session begins, the pair trades at 0.6595, up 0.14%.


Aussie Dolar gains momentum amid the beginning of Asia session

Wall Street ended the session on a higher note following the Fed’s decision. The US central bank kept the Federal Funds rate (FFR) at 5.25%- 5.50% and stated that the economy and the jobs market are robust. The disinflation process had evolved, but the last two readings of the CPI and PPI justified the Fed’s rhetoric of being patient. Despite that, Fed officials stick to their three rate cuts in 2024.

Following the data, the US 10-year Treasury note yield fell one and a half basis points to 4.277%, while the Greenback got battered. The US Dollar Index (DXY), a gauge of the buck’s value against other currencies, tumbles 0.42% and sits at 103.38, aiming below the 200-day moving average (DMA), a key dynamic support level, that depicts a financial markets asset as bullish or bearish.

On the Aussies' front, the schedule featured the release of Judo Bank Flash PMI figures for March. The manufacturing PMI dipped from 47.8 to 46.8, while the Services PMI rose from 53.1 to 53.5. The Composite Index came at 52.4, up from 52.1.

AUD/USD traders’ eye further data from Australia, with the jobs market expected to add 40,000 people to the workforce. That would lower the unemployment rate, from 4.1% to 4%. A strong reading could suggest the Reserve Bank of Australia (RBA) should stick to its current stance and shrug off speculations of the first-rate cut in August.


AUD/USD Price Analysis: Technical outlook

From a technical perspective, the AUD/USD printed a leg-up, clearing key resistance levels and poised to breach the 0.6600 figure. The Relative Strength Index (RSI) confirms that statement, as it aims higher in bullish territory, with the pair closing at weekly highs, snapping four days of losses. The next supply zone would be the psychological 0.6650 mark, followed by the March 8 high at 0.6667. Once cleared, that would expose 0.6700.


AUD/USD

OVERVIEW
Today last price 0.6595
Today Daily Change 0.0063
Today Daily Change % 0.96
Today daily open 0.6532

 

TRENDS
Daily SMA20 0.6559
Daily SMA50 0.6562
Daily SMA100 0.659
Daily SMA200 0.6559

 

LEVELS
Previous Daily High 0.6564
Previous Daily Low 0.6504
Previous Weekly High 0.6639
Previous Weekly Low 0.6552
Previous Monthly High 0.661
Previous Monthly Low 0.6443
Daily Fibonacci 38.2% 0.6527
Daily Fibonacci 61.8% 0.6541
Daily Pivot Point S1 0.6503
Daily Pivot Point S2 0.6473
Daily Pivot Point S3 0.6443
Daily Pivot Point R1 0.6563
Daily Pivot Point R2 0.6593
Daily Pivot Point R3 0.6623


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AUD/USD Stays Steady As Traders Digest RBA Decision, Eyes On Fed Meeting
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