The rally that shaped up yesterday in the AUDUSD pair yesterday has fizzled out on Thursday morning. At the time of writing, the antipodean currency was hovering in the vicinity of 0.7712. Earlier in today’s trading session, the pair retraced to a four-week high of 0.7743. The AUDUSD pair is likely to consolidate within the range of 0.7700-0.7755 over the next few hours, while further buying could push the aussie back up to 0.7755.
On the one hand, the aussie’s stability is underpinned by recent stellar macro data points: the unemployment rate in Australia in March fell to 5.6% from 5.8% in the previous month, and the Australian economy added 70.7k new jobs in March, more than twice as high as the consensus forecast. A strong labor market lays the groundwork for further recovery of the country’s economy. On the other hand, local weakness in the US dollar has also given the aussie a shot in the arm.
Our outlook for AUD is positive today, so buying could resume quickly.