Experts’ Opinions on the US Labor Market

BCA Research’s Chief Global Strategist and Director of Research commented on Thursday’s weekly jobless claims data, stating:

“Unemployment claims are better than expected. Claims show strong seasonal patterns and tend to decline at this time of year. While initial claims are similar to recent years (post-pandemic), ongoing claims still appear slightly elevated.”

Short-term forecast: Bullish

The short-term trends for AUD/USD will hinge on the US employment report. Positive US employment data could reduce expectations for a Fed rate cut by 50 basis points, suggesting a decline in AUD/USD towards $0.66500.

Traders should be vigilant about economic data and central bank commentary, which can affect AUD/USD price trends. Monitor real-time data, news updates and expert commentary to adjust your trading strategies.

Stay up to date with our latest opinions and analysis to manage your exposure to the forex markets.

AUD/USD Price Action

Daily chart

The AUD/USD pair remained clearly above the 50-day and 200-day EMAs, confirming the upward price trends.

A move back to $0.67500 could support a move towards the resistance at $0.67967. Additionally, a break above the resistance at $0.67967 could give bulls an opportunity to break towards $0.68500.

Investors should consider the US jobs report and comments from central banks.

On the upside, a break of the $0.67003 support level may give bears a chance to break through the 50-day EMA.

With the 14-period daily RSI indicator at 55.02, the Australian dollar could rise to $0.68500 before entering the overbought zone.