- AUD/USD struggles to make a decisive move in either direction on Thursday.
- Upbeat labour market data from Australia helped AUD stay resilient against its rivals.
- US Dollar Index clings to modest daily gains above 93.00.
The AUD/USD edged lower in the early Asian session on Thursday but gained traction on the back of upbeat labour market data from Australia. However, the broad-based USD strength made it difficult for the pair to preserve its bullish momentum. As of writing, AUD/USD was virtually unchanged on the day at 0.7305.
The Australian Bureau of Statistics reported on Thursday that the Unemployment Rate in August fell from 7.5% to 6.8%, compared to analysts estimate of 7.7%. Additionally, the Employment Change came in at 111K and surpassed the market expectation of -50K by a wide margin.
DXY continues to hold above 93.00
On the other hand, the Federal Reserve’s relatively optimistic outlook in its updated Economic Projections provided a boost to the greenback on Wednesday. The US Dollar Index (DXY) climbed to its highest level since September 9th at 93.59 and didn’t allow AUD/USD to capitalize on the strong data.
Ahead of mid-tier data releases from the US, the DXY is up 0.15% on a daily basis at 93.25. The US Department of Labor will release its weekly Initial Jobless Claims and the Federal Reserve Bank of Philadelphia will publish its Manufacturing Survey.
There won’t be any significant macroeconomic data releases featured in the Australian economic docket on Friday and the USD’s market valuation is likely to remain the primary driver of AUD/USD’s movements.
Technical levels to watch for
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