At Extreme Investor Network, we provide unique insights into the stock market and trading world to help you make informed decisions. In the latest developments, a steady unemployment rate coupled with a surge in nonfarm payrolls could potentially support wage growth. This upward trend in wages may lead to increased disposable income, which in turn could fuel consumer spending and demand-driven inflation. As a result, the Federal Reserve may decide to delay rate cuts in order to reduce disposable income and curb consumer spending.
Economists are predicting a rise in nonfarm payrolls by 200k in March, following a previous increase of 275k in February. Despite expectations for the US unemployment rate to remain at 3.9%, economists are forecasting a 4.1% year-on-year increase in average hourly earnings. In February, average hourly earnings saw a 4.3% year-on-year rise.
With the upcoming US Jobs Report in focus, the commentary from FOMC members such as Thomas Barkin, Susan Collins, and Michelle Bowman could have a significant impact on the market. Their views on the jobs report and the potential timing of a Fed rate cut will be closely watched.
In the short term, the AUD/USD trends will be influenced by the US Jobs Report and commentary from FOMC members. Positive labor market data and hawkish Fed commentary could lead to a stronger US dollar.
Looking at the AUD/USD price action on the daily chart, the currency pair is currently trading above the 50-day and 200-day EMAs, indicating bullish signals. A move towards the $0.66 handle could pave the way for a rally towards the $0.66500 level, with a potential breakout above that level targeting the $0.67003 resistance.
On the downside, a drop below the 200-day EMA and the $0.65760 support could signal a further decline towards the 50-day EMA and potentially the $0.64582 support level. With a 14-period Daily RSI reading of 56.26, the AUD/USD could still have room to move towards the $0.66500 handle before entering overbought territory.
Stay tuned for more insights and analysis on the stock market and trading world at Extreme Investor Network. Our expert team is dedicated to providing you with valuable information to help you navigate the ever-changing market dynamics.
