Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

AUD/USD seeks to maintain gains after rosy US session as NFPs nears

Australian dollar gains ground amid broader sentiment recovery; copper prices rise as supply and demand factors see improvement and AUD/USD testing resistance from May after beating 200-day SMA.

Source: Bloomberg

Friday’s Asia-Pacific outlook

The risk-sensitive Australian dollar put in a solid rally versus the US dollar overnight as risk appetite returned to US markets. Stocks on Wall Street rose into the closing bell following a morning lull, encouraged by rosy data on unemployment claims. Those numbers helped to temper some risk aversion ahead of tonight’s highly anticipated US non-farm payrolls report—which is likely to influence short-term economic forecast and alter the Fed’s perceived rate hike path. Analysts expect to see the US add 323k jobs in May, according to a Bloomberg survey.

Other Asia-Pacific currencies, such as the New Zealand dollar, were also stronger overnight. Australia’s trade data from yesterday surprised analysts, with its surplus rising more than expected, helping to cool fears over a slowdown in economic growth throughout the region. The slowdown in bond selling seems to support that view, although the global economic outlook remains highly precarious as central banks attempt to tamp down inflation.

Moreover, the rebound in oil prices, following a decision by OPEC+ to increase production, also supports the market’s view that the odds of a recession may be waning. The oil cartel and its allies, on Thursday, announced that they would increase production by 648,000 barrels per day in July and August. The move comes amid soaring gasoline prices, perhaps stoking fears among members that those high prices may induce demand destruction, which may already be occurring in the United States.

Elsewhere, metal prices, particularly copper, rose sharply. The price of copper in New York increased more than 5% to its highest level since April 25. An announcement from Chile’s government stated that copper production has dropped across its state-owned mining enterprises on a year-over-year basis. China’s recent rollback of Covid restrictions provided a solid base for the supply-side news to drive prices higher. APAC traders will be monitoring home loans data out of Australia, set to cross the wires at 01:30 GMT.

AUD/USD technical forecast

AUD/USD is battling the May swing high after rising above its 200-day Simple Moving Average (SMA) overnight. Prices vaulted higher from the 38.2% Fibonacci retracement shortly after the MACD oscillator crossed above its centerline. A former level of support at the 61.8% Fib level may provide the next level of resistance if prices continue to rise.

AUD/USD daily chart

Source: TradingView


This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.