Australian Dollar rebounds modestly from multi-year lows
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AUD/USD recovers to 0.6160 on Monday, up 0.16%. US Dollar strength remains intact following robust NFP report. RBA’s dovish hints keep the Aussie under pressure. The Australian Dollar managed to regain the smile and leave behind four consecutive daily retracements on Monday, gathering some traction soon after hitting lows not seen since April 2020 near 0.6130. Despite the mild uptick, the currency remains weighed down by strong US employment data and a cautious outlook from the Reserve Bank of Australia (RBA). Daily digest market movers: Aussie gains some ground after a stellar US jobs report The US Bureau of Labor Statistics reported 256,000 new jobs last month, beating the 160,000 forecast; November’s figure was revised from 227,000 to 212,000. The Unemployment Rate dropped to 4.1%, while Average Hourly Earnings decreased from 4% to 3.9%. Traders now expect the Federal Reserve to cut rates only once in 2025, boosting US Dollar momentum. In addition, the US economic calendar will feature December’s Consumer Price Index figures, which might set the pair’s dynamics. The US 10-year Treasury yield soared to near 4.80%, while the US Dollar Index (DXY) touched 109.96, its highest level since November 2022. The Aussie remains under pressure due to RBA’s dovish stance and soft Australian fundamentals, compounded by worries over China’s slowing economy. AUD/USD technical outlook: Gains remain fragile as oversold signals persist The AUD/USD rose by 0.16% to 0.6160 on Monday, attempting to stabilize near the lowest level since April 2020. The Relative Strength Index (RSI) hovers at 32, indicating a near-oversold condition but showing a modest improvement. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram prints rising red bars, suggesting that bearish momentum has softened yet not fully reversed. Although the pair has managed to stop the bleeding, lingering headwinds including a strong US Dollar and RBA…
Filed under: News - @ January 13, 2025 11:22 pm