Never miss a story from Megha Torpunuri

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.
For more info on how we might use your data, see our privacy notice and access policy and privacy website.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo
Or, read more articles on DailyFX

You are subscribed to Megha Torpunuri

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

TALKING POINTS – AUD/USD, EMPLOYMENT DATA, TRADE WARS, CPI

  • Australian Dollar gained against the greenback on better-than-expected employment data
  • AUD/USD prices’ rally brings key levels 0.71611-0.7234 into play as possible support
  • US-China trade negotiations, 4Q Australian CPI, and US shutdown in the spotlight

Build confidence in your own AUD/USD strategy with the help of our free guide!

The Australian Dollar strengthened against its US counterpart after local employment data crossed the wires during Thursday’s Asia Pacific trading session. The Australian economy added 21.6k jobs in December, beating the estimate of 18.0k, but down from the prior 39.0k. Meanwhile, last month’s unemployment rate clocked in at 5.0%, a decline from both the forecast and previous 5.1%. Full-time jobs decreased by 3.0k, an uptick from November’s -7.3k.

AUD/USD Chart (5-minute)

Please add a description for the image.

Chart prepared in TradingView

However, the slight uptick in prices may not continue, despite AUD/USD’s recent rally following confirmation of a Morning Star Bullish Reversal. The Aussie is trading in a familiar range, which has served as support levels in May and December 2016 at approximately 0.71611-0.7234. A break above this could indicate further gains, but is unlikely as the prolonged US government shutdown and threats of more tariffs against China could lead to further falls in equities and the pro-risk AUD.

AUD/USD Chart (Daily)

Please add a description for the image.

Chart prepared in TradingView

Looking ahead, the currency pair will closely eye the outcome of upcoming trade negotiations between the US and China later this week. Continued friction and a failure to reach a deal between the world’s two largest economies could lead to a bearish reversal. In addition, AUD/USD will also look to 4Q Australian CPI data and the possible release of last quarter’s US GDP next week.

AUD/USD Trading Resources

--- Written by Megha Torpunuri, DailyFX Research Team