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AUD/USD holds gains above 0.7100 with US jobs, Australian inflation eyed

The Aussie Dollar (AUD) has ticked down from fresh three-year highs at 0.7128 against the US Dollar, but remains steady above previous highs of 0.7095, as investors brace for the US Non-farm Payrolls release, due later on the day, and the Australian Consumer Inflation Expectations report, on Thursda

🔗 Source

💡 DMK Insight

The Aussie Dollar’s recent dip from 0.7128 is a crucial moment for traders to assess potential volatility. With the upcoming US Non-farm Payrolls and Australian Consumer Inflation Expectations reports, market sentiment could shift dramatically. If the NFP data comes in stronger than expected, it could bolster the USD, putting further pressure on the AUD. Conversely, if Australian inflation expectations rise, it might support the AUD, especially if it holds above the 0.7095 level. Traders should watch for a breakout or breakdown around these key levels, as they could signal larger moves in either direction. Keep an eye on the 0.7095 support; a sustained drop below could trigger further selling, while a bounce could indicate bullish momentum. The real story here is how these reports could influence central bank policies. A strong NFP might lead to speculation about faster rate hikes from the Fed, while rising inflation in Australia could prompt the RBA to reconsider its stance. This interplay will be critical for positioning in both AUD/USD and related markets like commodities, which often correlate with the Aussie Dollar’s performance.

📮 Takeaway

Watch the 0.7095 support level closely; a break could signal further AUD weakness ahead of key US and Australian economic reports.

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