The Australian Dollar (AUD) appreciates for the fourth successive day on Friday. This upside could be attributed to persistently high inflation is prompting the Reserve Bank of Australia (RBA) to delay potential rate cuts.
RBAÂ’s June Meeting Minutes indicated that the “board judged the case for holding rates steady stronger than hiking.” The board emphasized the need to remain vigilant regarding upside risks to inflation, noting that data suggested an upside risk for May’s Consumer Price Index (CPI).
The AUD/USD pair also receives support from a weaker US Dollar (USD). The Greenback struggles due to the softer economic data from the United States (US) raising speculations of the Federal Reserve (Fed) reducing interest rates in 2024. The recovery in US Treasury yields could hold the downside of the US Dollar.
Traders await the US employment reports on Friday, which are expected to show a slowdown in employment growth in June. The US Nonfarm Payrolls (NFP) are expected to show an increase of 190,000 new jobs, down from the previous reading of 272,000. US Average Hourly Earnings are anticipated to moderate slightly, projected to decrease to 3.9% year-over-year from the prior 4.1% reading.
The Australian Dollar trades around 0.6730 on Friday. The analysis of the daily chart shows a rising wedge, which suggests a potential bearish reversal. Additionally, the 14-day Relative Strength Index (RSI) is slightly below the 70 level. If the RSI breaks above this level, it would suggest the asset is overbought and may experience a short-term correction.
The AUD/USD pair is likely to test the upper boundary of the rising wedge at around 0.6780, followed by the psychological level of 0.6800.
On the downside, the AUD/USD pair tests the lower boundary of the rising wedge at 0.6730, followed by the 50-day Exponential Moving Average (EMA) at 0.6635.
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the US Dollar.
 | USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
---|---|---|---|---|---|---|---|---|
USD | Â | -0.08% | -0.07% | -0.32% | -0.03% | -0.10% | -0.03% | -0.13% |
EUR | 0.08% | Â | 0.00% | -0.24% | 0.06% | -0.02% | 0.06% | -0.07% |
GBP | 0.07% | -0.00% | Â | -0.25% | 0.05% | -0.02% | 0.05% | -0.09% |
JPY | 0.32% | 0.24% | 0.25% | Â | 0.29% | 0.24% | 0.28% | 0.17% |
CAD | 0.03% | -0.06% | -0.05% | -0.29% | Â | -0.08% | 0.00% | -0.14% |
AUD | 0.10% | 0.02% | 0.02% | -0.24% | 0.08% | Â | 0.07% | -0.03% |
NZD | 0.03% | -0.06% | -0.05% | -0.28% | -0.00% | -0.07% | Â | -0.14% |
CHF | 0.13% | 0.07% | 0.09% | -0.17% | 0.14% | 0.03% | 0.14% | Â |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
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