Updated
Updated · DailyForex.com · Aug 4
AUD/USD Holds Near 0.70 as U.S. Jobs Data Steers Fed Rate Outlook
Updated
Updated · DailyForex.com · Aug 4

AUD/USD Holds Near 0.70 as U.S. Jobs Data Steers Fed Rate Outlook

3 articles · Updated · DailyForex.com · Aug 4

Summary

  • AUD/USD steadied after rallying to a multi-month high near 0.7050, with traders now focused on Thursday jobless claims and Friday’s July U.S. payrolls report for the pair’s next move.
  • Kevin Warsh’s emphasis on data-dependent policy has raised the stakes: a strong labor report could lift the dollar and pressure the Aussie, while softer numbers would likely support AUD/USD.
  • The pair is also drawing support from broader risk appetite, helped by signs of a Middle East breakthrough, lower oil prices and earlier yen-support intervention by Japanese and U.S. authorities.
  • On the charts, traders are watching resistance around 0.7020 and 0.7050, while support sits near 0.6990 and 0.6970 if the pair slips back into its prior descending channel.

Insights

Will the historic US-Japan intervention permanently shift currency tides, or is the Aussie dollar walking into a data-driven trap?
Can the Fed's hidden repo tools continue to shield global markets, or will Friday's jobs report shatter the AUD/USD breakout?