AUDUSD Stabilizes Above MAs, After RBA Gov Bullock Speech

The AUDUSD pair made a strong recovery after hitting fresh 2024 lows of 0.6349 last Monday and is consolidating at the previous range. This week, the pair climbed back above the 0.6600 level and surpassed key moving averages, returning to a consolidation phase with support from the H4 chart’s MAs. The pair saw additional gains yesterday, driven by positive Australian employment data, pushing above MAs which have turned into support.

AUD/USD Chart H4 – MAs Are Holding As Support

Before the report, AUD/USD tested the crucial support at 0.6570 but rebounded sharply as new job figures exceeded expectations, despite a slight uptick in the unemployment rate. This resurgence aligned with the bullish trend seen over the past two weeks on an intraday basis, with the pair now eyeing a break above the 0.6640 level to potentially pave the way toward 0.6730.

Meanwhile, the Reserve Bank of Australia (RBA) remains committed to its current policy approach, bolstered by the strong employment report.

Employment Report from Australia for July 2024

• Employment Change:

  • Employment increased by +58.2k (vs. +20.0k expected)
  • Full-Time Employment rose by +60.5k (up from +43.3k in June)
  • June Employment was +50.2k

• Unemployment Rate:

  • July unemployment rate was 4.2% (vs. 4.1% expected)

• Participation Rate:

  • July participation rate reached a new high at 67.1% (vs. 66.9% expected)
  • Previous participation rate was 66.9%

• Underemployment and Underutilisation Rates:

  • Underemployment rate improved to 6.3% (from 6.4% prior)
  • Underutilisation rate increased slightly to 10.6% (from 10.5% prior)

Unlike many global central banks that have adopted a dovish stance and begun cutting rates, RBA member Bowman’s comment that rate cuts were not discussed in last week’s policy meeting provided further support for the AUD/USD pair. Governor Bullock also delivered a speech today, reinforcing the bank’s steady course.

Comments from the RBA Governor Bullock

AUD/USD Live Chart

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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