AUDUSD is moving in Ascending channel and market has rebounded from the higher low area of the channel
Australian Dollar Strengthens Despite Mixed Employment Data
The Australian Dollar (AUD) has been trading on a stronger note, supported by mixed employment data released on Thursday. The report showed a rise in the number of employed people by 50.2K, while the unemployment rate ticked higher to 4.1%. Despite the positive employment data, the emergence of some USD buying pressure has kept a lid on any meaningful upside for the AUD/USD pair.
A Stronger Australian Dollar Amid Employment Gains
The Australian Dollar has shown strength during the early European session on Thursday. This uptick is supported by a relatively stronger domestic jobs report, which suggests the possibility of another rate hike by the Reserve Bank of Australia (RBA). Alongside this, the bullish sentiment surrounding global equity markets benefits the risk-sensitive Aussie, helping the AUD/USD pair to recover from the vicinity of a two-week low, around the 0.6715 region touched on Tuesday.4
Impact of Chinese Economic Headwinds and Copper Prices
While the Australian Dollar has strengthened, rising economic headwinds in China, along with falling copper prices, have held back bulls from placing aggressive bets around the resources-linked Australian Dollar. On the other hand, the US Dollar (USD) has gained some positive traction, reversing part of the previous day’s losses to a nearly four-month low. This further contributes to capping the AUD/USD pair, warranting caution before confirming that the recent pullback from a multi-month peak has run its course.
Mixed Employment Data: What It Means for the RBA
The official data published by the Australian Bureau of Statistics (ABS) on Thursday showed that the unemployment rate rose to 4.1% in June, compared to expectations and the previous figure of 4.0%. This slight disappointment was offset by an unexpected rise in the number of employed people, from 39.7K in May to 50.2K in June, well above consensus estimates of 20.0K. While the mixed data does little to influence expectations about the Reserve Bank of Australia’s next policy move, it does provide a modest lift to the Australian Dollar and the AUD/USD pair.
AUDUSD is moving in box pattern and market has rebounded from the support area of the pattern
The US Dollar’s Influence on the Australian Dollar
Despite the positive employment data in Australia, the US Dollar has attracted some buyers, reversing part of the previous day’s heavy losses to a nearly four-month trough. This has kept a lid on any meaningful gains for the major. Meanwhile, a September interest rate cut by the Federal Reserve is fully priced in, and investors are betting on the possibility of two rate cuts by year-end, which should cap the upside for the USD.
Australian Dollar Outlook: What to Expect Next
The mixed employment data and the stronger US Dollar have created a complex scenario for the Australian Dollar. On one hand, the positive employment data suggests a potential rate hike by the RBA, which could strengthen the AUD further. On the other hand, the stronger US Dollar and economic headwinds in China pose significant challenges for the Australian Dollar. Investors will need to keep a close eye on these factors to navigate the AUD/USD pair in the coming days.
Summary
The Australian Dollar has shown resilience in the face of mixed employment data, supported by a stronger domestic jobs report and bullish sentiment in global equity markets. However, rising economic headwinds in China and a stronger US Dollar have tempered the gains for the AUD/USD pair. While the positive employment data suggests a potential rate hike by the RBA, the stronger US Dollar and economic challenges pose significant hurdles for the Australian Dollar. Investors will need to monitor these factors closely to make informed decisions in the forex market.
Don’t trade all the time, trade forex only at the confirmed trade setups
Get more confirmed trade signals at premium or supreme – Click here to get more signals , 2200%, 800% growth in Real Live USD trading account of our users – click here to see , or If you want to get FREE Trial signals, You can Join FREE Signals Now!
