During the early hours of Thursday’s trading day, the AUD/USD pair witnessed a significant dip; nevertheless, the Australian dollar continues to linger at multi-month highs as we anticipate the release of Non-Farm Payroll data in the United States which is expected to be released later today. The manufacturing sector in China exerts a tremendous amount of influence over the Australian dollar, and by extension AUD/USD. As a result of the latest manufacturing data returning to positive territory, this trend is beneficial not just for the Australian dollar but also for the economy as a whole in Australia.
It is essential to keep in mind that the statement on non-farm payrolls is planned to take place on Friday. This will have a huge influence on the future movements of the United States dollar, which is an essential factor in the AUD/USD scenario. At the moment, we give the impression of being relatively stretched; nevertheless, this most likely means that we are moving through nothing more than a probable consolidation period before the upcoming movement takes place.
In the event that AUD/USD reverses position and goes below the 0.66 level, I will consider this to be a false breakthrough. On the other hand, the Australian dollar has been fairly volatile in recent times, and I do not believe that this will change in the near future. The level of 0.68 and the level of 0.6925 are both potential goals for an upward movement in AUD/USD.
In the event that we are able to break through the 0.66 level to the downside, it is quite probable that there will be little resistance that will block a move towards the 0.6450 level in AUD/USD, which has been an important support level for the majority of the twentieth century. Any progress below that threshold would be devastating, especially considering the extent to which we have already stretched ourselves toward the limit of our capabilities. In the next sessions, it is predicted that the Reserve Bank of Australia would conduct a tightening of monetary policy. This will place the Reserve Bank of Australia as one of the few prominent central banks across the world that is following this approach.