Audusd shows slight increase amid U.S. job market growth and upcoming inflation data release

AUDUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.07%	4.7 Pips
Week to-date	-0.35%	-22.1 Pips
March	1.27%	78.5 Pips

Upcoming key events (London Time)

Wed 12:30 PM USD CPI Inflation Rate (12-mth)
Thu 12:30 PM USD PPI excluding Food and Energy sectors (12-mth)

What happened lately

In the United States, January’s Job Openings and Labor Turnover Survey (JOLTS) illustrated a positive development in the labor market as job openings increased to 7.74 million. This figure was a noticeable increment from the revised December number of 7.508 million, suggesting a robust demand for labor in the American economy. According to the Bureau of Labor Statistics, this rise indicates that companies are actively seeking workers, which reflects confidence in economic conditions despite ongoing global uncertainties.

The AUDUSD currency pair showed a slight increase of 0.07% on Tuesday, closing at 0.62820. Although the pair is currently in a consolidation phase, meaning it is awaiting significant price movements based on upcoming data releases, this increase hints at a potential optimism regarding the Australian dollar.

Looking forward, two critical U.S. economic indicators are set to be released: the Consumer Price Index (CPI) Inflation Rate and the Producer Price Index (PPI), excluding food and energy sectors. These will be published on Wednesday and Thursday, respectively, and are expected to have a high impact on market dynamics. The CPI and PPI reports will provide further insights into inflationary pressures in the U.S., affecting monetary policy decisions and investor sentiment towards the U.S. dollar.

In terms of its impact on AUDUSD, the increase in U.S. job openings could initially put upward pressure on the USD due to perceptions of economic strength, leading to potential pressure on the AUD. However, if upcoming U.S. inflation data signals a softer-than-expected price environment, this could counterbalance the labor market news by easing expectations for aggressive Fed rate hikes, thereby providing support for the AUD relative to the USD. Traders will be closely monitoring these economic indicators, as they have the potential to significantly influence the direction of AUDUSD in the short term. Moreover, with the pair in consolidation, any significant economic developments can prompt a breakout, potentially leading to increased volatility in the forex market.

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What can we expect from AUDUSD today?

AUDUSD on Tuesday rose 0.07% to 0.62820. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for AUDUSD looks mixed as the pair is likely to consolidate above 0.62737 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.62838 or trades above daily pivot 0.62787. Break above could target R1 at 0.62871. While to the downside, we are looking at 0.62737 (S1) and daily low of 0.62704 as support levels. AUDUSD need to break on either side to indicate a short-term bias. A break above 0.62838 may suggest continuation after recent positive movement.

For the week to-date, take note that AUDUSD is mixed as compared to the prior week.

Key levels to watch out:

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