Audusd rises 0.56% amid mixed US economic data and anticipation of australian employment report

AUDUSD Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	0.56%	35.6 Pips
Week to-date	1.4%	88 Pips
April	2.06%	128.9 Pips

Upcoming key events (London Time)

Thu 02:30 AM AUD Labour Force Monthly Employment Change

What happened lately

In March, the U.S. Monthly Retail Trade excluding Automobile saw a deceleration to 0.5% from a previously revised figure of 0.7% in February. However, the overall U.S. Monthly Retail Trade experienced a significant increase, reaching 1.4% in March, up from 0.2% in February. This indicates a robust growth in consumer spending despite the removal of the automobile segment. Meanwhile, the U.S. Retail Trade Control Group, which excludes certain volatile categories to provide a clearer picture of core retail sales, decreased to 0.4% in March from a revised 1.3% in February, suggesting some underlying weakness in consumer spending. Additionally, the New York Empire State Manufacturing Index showed improvement in April, rising to -8.1 points from -20 points in March, indicating a reduction in the rate of contraction in the manufacturing sector.

The recent economic data from the U.S. presents a mixed outlook, with strong retail performance contrasted with some underlying weaknesses demonstrated by the Retail Trade Control Group. The improvement in the New York Empire State Manufacturing Index, however, provides a degree of optimism for economic recovery in the manufacturing sector. Despite these mixed signals from the U.S., the Australian dollar rose 0.56% against the U.S. dollar on Wednesday, indicating some strengthening of the AUD.

The effect of these economic data on AUDUSD can be complex. While the increase in U.S. retail sales suggests a strong consumer market which could bolster the USD, the decline in the Retail Trade Control Group and only partial recovery in manufacturing may create caution among traders. The impending high-impact Australian Labour Force Monthly Employment Change report could also play a significant role in affecting the AUDUSD pair. If the employment data from Australia is positive, it could lead to further strengthening of the AUD, providing potential upward pressure on AUDUSD. On the other hand, if the employment data disappoints, it could dampen AUD’s recent gains. Overall, market participants will be closely monitoring both U.S. and Australian economic indicators to gauge the direction of the AUDUSD pair.

Latest from X (Twitter)

Tweets by Australian Bureau of Statistics

What can we expect from AUDUSD today?

AUDUSD on Wednesday rose 0.56% to 0.63690. Price is above 9-Day EMA while Stochastic is falling in overbought zone.

Updated daily direction for AUDUSD looks mixed as the pair is likely to consolidate above 0.63298 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.63915 or trades above daily pivot 0.63607. Break above could target R1 at 0.63998. While to the downside, we are looking at 0.63298 (S1) and daily low of 0.63215 as support levels. AUDUSD need to break on either side to indicate a short-term bias. A break above 0.63915 may suggest continuation after recent positive movement.

For the week to-date, take note that AUDUSD is bullish as the pair continued to trade higher and is up by 1.4% over the past few days.

Key levels to watch out:

#AUDUSD Trending on Twitter

[custom-twitter-feeds hashtag=”#AUDUSD” num=3 showheader=false]