The AUD/USD exchange rate faced continued pressure this week as market participants assessed the most recent Australian employment figures. The current trading value stands at 0.7055, reflecting a decline from the year-to-date peak of 0.7155. The AUD/USD pair faced continued pressure this week following the release of the latest labor market data from Australia. A report released on Wednesday indicated that Australia’s wage price index increased from 3.3% in the third quarter to 3.4% in the fourth quarter. Another report released on Thursday indicated that the Australian labor market performed positively in January this year. In January, the economy experienced an increase of 17,000 jobs, predominantly in full-time positions. In January, there was a decline of 32,000 in part-time employment.
The report indicated that the unemployment rate held steady at a historical low of 4.1%, suggesting that the labor market is functioning at full capacity. The recent figures were released shortly after the Reserve Bank of Australia made public the minutes from its most recent monetary policy meeting. The minutes indicated that officials expressed concern regarding the increasing inflation levels in the country and suggested the possibility of additional rate hikes this year. The AUD/USD exchange rate experienced a decline following the release of the Federal Reserve’s minutes from the most recent monetary policy meeting. The minutes revealed significant discord among decision-makers. Several officials maintained their endorsement for additional interest rate reductions, highlighting the recent downward trend in inflation over the past few weeks.
Simultaneously, certain officials advocated for maintaining the current interest rates, highlighting that inflation has consistently exceeded the 2% target for several years. The forthcoming pivotal drivers for the upcoming US macroeconomic data are set to be released on Thursday and Friday. The upcoming release of the Philadelphia Fed manufacturing index and trade numbers is anticipated in the US. The United States is set to release the initial estimate of the GDP report, a crucial indicator of economic performance. The daily timeframe chart indicates that the AUD/USD exchange rate has experienced downward pressure recently, declining from a peak of 0.7155 on February 11 to its current level of 0.7055.
The Relative Strength Index has decreased from a peak of 85.65 to its present level of 60. Additionally, the two lines of the MACD indicators have established a bearish crossover pattern. Consequently, the pair is expected to maintain its downward trajectory, possibly reaching the critical support level at 0.6945, which was its peak in September of the previous year. A breach of the year-to-date peak at 0.7155 will negate the bearish perspective.