The Australian dollar, a risk-sensitive currency, is surging after the closing of the Asia-Pacific trading week. Another factor supporting its growth is the data regarding US jobs, showing relief in the number of infected. During the recent Wall Street trading session, traders dropped the US dollar to focus on the upcoming NFP (non-farm payrolls report.)
Traders will use the report to gauge where the Federal Reserve would go with the policy. According to analysts, the trading figures might cross at +750,000, which is slightly below July’s 943,000 print. The upcoming NFP will be the final one before the Fed’s Open Market Committee meeting this month. As the inflation targets set by the Fed are already met, jobs will play a major topic in the meeting.
On the other side of the world, the Australian dollar is popping back from its lowest mark in 2021 against the USD. The previous week witnessed non-commercial traders rolling back bullish speculations on the AUD. However, the best is still placed near 2021 highs reached by the currency. With the market predicting a positive outlook for the currency, traders are looking for the best forex brokers in Australia.
The comeback is primarily a rollback from the downbeat AUD faced after the fear of Delta variant surfaced. The CFTC (Commodity Futures Trading Commission) is set to provide an update during the US session. The upcoming data will share how traders perceive the Australian dollar’s performance in the coming months.
While the AUD-USD has completely retracted from the post-wedge breakdown, the upside momentum is slowing after breaching the 50-day SMA (simple moving average.) The RSI (relative strength index) is dropping in the overbought territory near the 70 mark. It might result in the prices falling to the 50-day SMA. If it breaks lower, the market might see a prior trendline or 78.6% Fib level.
Traders are showing faith in the Australian dollar despite mixed feelings about it.