CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.  The majority of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Aussie Dollar Rallies on Robust Jobs Data, USD Holds the Key to Next Moves

The Aussie dollar has rallied well over the last few days of trading after hitting fresh lows just under 0.6130 on January 13. This rally has come on the back of some USD selling across the market and a stronger employment data print. Employment numbers came in much stronger than expected with over 50k more jobs being filled against an expected 15k and this has helped the currency move up to its first initial resistance level, currently sitting just under 0.6250.

Hopes that we could see the first cut from the RBA at their next meeting have been pushed back by the data and this will help bulls that had been concerned that there could be further downside for the currency in the days ahead, however most traders agree that the USD side of the equation will continue to dominate moves for the pair. Inflation data out of the States this week has come in slightly weaker than expected with both PPI and CPI numbers printing below predictions, however the dollar still remains trading close to multi-year highs and it remains to be seen whether more data will back up this week’s numbers and lead to a change in Fed rate cut expectations. There is of course the added complication of the new US government coming into power in the next week with most of their proposed policies expected to lead to more dollar buying. For now, the down trend for the Aussie remains in place and most speculators are still looking to sell rallies.

Hourly Chart Technical Levels

Resistance 2: 0.6302 – 2025 High
Resistance 1: 0.6242 – Trendline Resistance
Support 1: 0.6203 – 200 Day Moving Average
Support 2: 0.6129 – 2025 Low

Other Articles

Important Information

ATFX CONNECT EU does not offer services to retail clients. The information and contact details provided on this website are intended for professional clients’ use only.