- US Dollar Index (DXY) falls to 99.47 after a false break at the 100.00 level.
- Nonfarm Payrolls rise by 177,000, surpassing estimates but showing a slowdown in growth.
- The Australian Dollar strengthens, trading near 0.6430 amid easing trade tensions with China.
The AUD/USD pair sees gains on Friday, strengthening to near 0.6430 as the US Dollar softens. After a disappointing false break of the 100.00 level for the US Dollar Index (DXY), the Aussie benefits from improved sentiment surrounding US-China trade negotiations and a solid, yet slowing, jobs report in the US. While the market remains cautious, hopes for a resolution in the trade dispute between the two largest economies are providing a tailwind for the Australian Dollar.
Daily digest market movers: Trade hopes support the AUD, while US data remains mixed
- US Dollar Index retreats below 100.00, signaling waning strength after a false break.
- Nonfarm Payrolls for April show a gain of 177,000, exceeding expectations but slowing from previous months.
- Chinese officials signal openness to trade talks, boosting optimism for the US Dollar and easing trade tensions.
- The US labor market shows signs of cooling, as wage inflation remains steady at 3.8%.
- AUD/USD strengthens as markets digest improving sentiment from trade negotiations.
- US Treasury Secretary Bessent calls for Fed rate cuts, hinting at softer monetary policy ahead.
- The April NFP release sets the stage for the Federal Reserve’s next policy move, with traders eyeing rate cuts.
Technical analysis: AUD/USD flashes bullish signals as it trades near 0.6500
The AUD/USD pair is showing strong bullish momentum, currently trading around 0.6500, a 1.24% gain Friday near the top of its daily range (0.6377 – 0.6469). The RSI is neutral at 61.22, suggesting balanced momentum, while the MACD confirms the buy signal.
Both the Stochastic RSI Fast (49.55) and Stochastic %K (79.58) are neutral. Moving averages continue to reinforce the bullish outlook: the 20-day SMA (0.6320), 100-day SMA (0.6282), and 200-day SMA (0.6461) are all signaling buy, along with the 10-day EMA (0.6393) and 10-day SMA (0.6399).
Key support levels are at 0.6461, 0.6413 and 0.6411, while resistance sits at 0.6500 and 0.6550.
