AUDUSD pair takes the bids to a new intraday high at 0.6825.
The AUDUSD pair takes the bids to a new intraday high at 0.6825. Registering a rapid 25 pip gain on the positive Australian jobs report for June. The inability of the US Dollar to defend its two-day rebound from a 15-month low amid mixed signals from the US Federal Reserve (Fed) and China might add to the Aussie pair’s upward rise.
In June, Australia’s employment change increased by 32.6K, while the unemployment rate fell to 3.6%.
The AUDUSD pair now has its first daily gain in five days. However, Australia’s headline Employment Change increased by 32.6K vs 15K projected. And 75.9K before, while the Unemployment Rate fell to 3.5% versus the market’s projection of 3.6% remaining steady.
The PBoC maintains one-year and five-year LPRs but relaxes cross-border finance limitations.
Earlier in the day, at today’s Interest Rate Decision. The People’s Bank of China (PBoC) held its benchmark Loan Prime Rates (LPRs) unchanged. Nonetheless, the one-year and five-year LPRs remain unchanged at 3.55% and 4.20%, respectively. The Chinese central bank, on the other hand. Relaxed limits on cross-border finance by increasing the adjustment parameter for enterprises from 1.25 to 1.5.
On conflicting concerns about the Fed and China, the US dollar consolidates weekly gains at a multi-month low.
In other news, a Chinese diplomat’s newest remarks. As well as the US’s plans to limit investment in AI, Chip exports to China rekindle Sino-American tensions. Weighing on mood and posing a challenge to AUDUSD bulls owing to Canberra-Beijing links.
On the contrary, top-tier and regional banks in the United States indicate a gain in profits. As interest rates rise, while front-line technology shares hailed the lower yields. However, worries of higher for longer rates. As well as a lack of important data/events, dampened the optimism.
Against this backdrop, the S&P500 Futures contract with minor losses, while US Treasury bond rates trade neutral near the weekly low. Furthermore, the US Dollar Index (DXY) falls 0.25% intraday to retest the round figure of 100.00, capping a two-day bounce from the lowest level since April 2022, as Fed fears remain mixed. latest US housing and consumer expenditure figures.
Following that, reports concerning China and the Fed will be critical in determining short-term AUDUSD movements, while US Initial Jobless Claims and Existing Home Sales will adorn the economic calendar.
Technical Outlook
A fortnight-old rising support line, at 0.6760 at press time, limits the AUDUSD pair’s immediate downside, allowing it to go for the double peaks surrounding the 0.6900 round figure once again.
