The Impact of US Jobs Report on AUD/USD Trading Trends

The Impact of US Jobs Report on AUD/USD Trading Trends

The recent steady unemployment rate and surge in nonfarm payrolls have the potential to support upward wage growth. This could result in an increase in disposable income for consumers, leading to higher levels of consumer spending and demand-driven inflation. As a response, the Federal Reserve may choose to delay rate cuts in order to reduce disposable income and curb consumer spending.

Economists are predicting a rise in nonfarm payrolls of 200k in March, following an increase of 275k in February. While the US unemployment rate is expected to remain at 3.9%, average hourly earnings are forecasted to increase by 4.1% year-on-year. These figures show a slight dip compared to February, where average hourly earnings rose by 4.3% year-on-year.

With the US Jobs Report taking center stage, the commentary from FOMC members such as Thomas Barkin, Susan Collins, and Michelle Bowman could greatly influence market sentiments. The views on the report and the potential timing of a Fed rate cut are crucial for traders to consider. In the near term, trends in the AUD/USD pair will heavily rely on the data from the Jobs Report and the statements made by FOMC members.

The AUD/USD pair currently sits above the 50-day and 200-day EMAs, signaling a bullish outlook. If the pair manages to return to the $0.66 handle, it could potentially move towards the $0.66500 mark. A break above this level might lead to a test of the $0.67003 resistance level. On the flip side, a drop below the 200-day EMA and $0.65760 support level could indicate a bearish turn with a potential fall through the 50-day EMA. Further decline could bring the $0.64582 support level into focus.

Taking into account the 14-period Daily RSI reading of 56.26, it is suggested that the AUD/USD pair could make a move towards the $0.66500 handle before entering overbought territory. Traders should keep a close eye on developments in the US labor market and any potential shifts in Fed monetary policy, as these factors could greatly impact trading trends in the near future.

The US Jobs Report plays a vital role in shaping the trading landscape for the AUD/USD pair. With economic forecasts, technical analysis, and RSI indicators pointing towards potential price movements, traders need to stay informed and prepared to navigate the markets effectively.

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