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AUD/USD holds near multi-week highs as RBA rate bets linger
The Aussie stays supported near 0.7100 despite a weak Australian jobs report, as rising inflation expectations keep tightening bias on the table.
AUD/USD was trading around the 0.7100 area on Thursday, holding close to multi week highs after recovering from earlier lows, according to FXStreet. The pair was marginally softer on the day as the US dollar regained some ground, but the broader uptrend remained intact.
FXStreet pointed to a split in Australia’s recent data, with the latest employment report coming in weak and suggesting a cooling labor market. At the same time, inflation expectations have moved higher, leaving the outlook mixed rather than fully clarified for the Reserve Bank of Australia.
The RBA held the cash rate at 4.35% at its August meeting and signaled it could raise if upside inflation risks build, supporting the market’s tightening bias. FXStreet said near term attention has turned to Friday’s US flash purchasing managers index for fresh momentum clues after prior readings sat in expansion.
On the charts, FXStreet cited AUD/USD around 0.7115 on the 4 hour timeframe, holding above the 20 period and 100 period simple moving averages. It also highlighted nearby support around 0.7103 to 0.7104 and resistance clustered near 0.7120 to 0.7132, with RSI near 58 indicating mildly positive momentum.