Today we’d take a look at the AUD/USD currency pair, where we have seen some interesting developments. In particular, the pair managed to overcome the resistance level at 0.7550 and turned bullish. The changes in the pair largely result from recent reports from both the United States and Australia. From the US we had arguably the most important financial announcement this week, namely that the Federal Funds Rate has been increased to 1.25% (from 1.00%). Naturally, this gave the American dollar a boost against most currencies, the AUD included. Nevertheless, we also received financial reports from Australia on the employment change and the unemployment rate, which are important indicators for economic health. The reports were quite positive and exceeded expectations - the employment change of 42,000 is about four times higher than the predicted one of 9,700, and the unemployment rate dropped to 5.5% compared to the expected 5.7%. In conjunction with these positive reports, the AUD was able to pick itself up and rally against the dollar. Right now we are expecting more news from both the United States and Australia. From the Reserve Bank of Australia we are set to hear about interest rate policy changes today. In the US we are waiting for an unemployment claims report, where a slight decrease in numbers is expected. Due to the fact that the previous events managed to rattle the pair so much, the news we’d receive today is quite likely to cause more volatility in the AUD/USD.
Consulting the daily chart, we can see that the pair is moving above the resistance zone around 0.7500. As long as this trend continues, the bullish movement is bound to stay. We can surely enjoy the stronger Australian dollar for a few days, at least as long as it doesn’t drop below 0.7500.
