Aussie Dollar Soars After Strong Jobs Data, Post-FOMC

Fundamental Analysis

* Flying Aussie: The AUD/USD pair rise for the second consecutive day, receiving an extra boost after the optimistic Australian jobs report. Notably, the Australian Employment Change exceeded even the most optimistic predictions, further supported by the weakening US Dollar following the FOMC meeting. In February, Australia’s unemployment rate decreased to 3.7%, surpassing both expectations of 4.0% and the previous figure of 4.1%, as reported by the Australian Bureau of Statistics (ABS) on Thursday. Additionally, the Australian Employment Change for February stood at 116.5K, up from 0.5K in January, far exceeding the consensus forecast of 40.0K. On top of that, the pair was also boosted by the Fed after the central bank held its policy steady.

Technical Analysis

* Technical Breakout: AUDUSD was traded higher following prior breakout above the previous resistance level 0.6590. MACD which illustrate strong bullish momentum signal coupled with bullish market structure breakout suggest the pair to further continue its upward trend.

* Resistance And Targets: If the bullish momentum persists, the price is likely to head towards the resistance level 0.6635 and potentially break above the level to climb further. Conversely, if the price fails to break above 0.6635, it may indicate a short-term technical correction and head back towards the support level of 0.6590.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Although the currency pair is currently benefiting from a weaker dollar and positive data, investors are also eyeing the commodity market. A drop in copper prices and a slight increase in iron ore prices might restrict the Aussie dollar’s upward momentum. Additionally, investors are also monitoring China’s economy, Australia’s largest trading partner, for potential indicators.

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Monitoring

Stay updated on US and Japan Data, Fed updates and any shifts in the US Dollar’s strength. by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.