AUD/USD Near 0.6800 as Strong Jobs Data Fuels Bullish Trend.
AUD/USD Climbs Toward 0.6800 as Strong Jobs Data Lifts the Aussie — Forex Analysis Today
What’s Happening
AUD/USD is extending its rally for a fourth straight session, trading near 0.6810 during European hours. The Australian Dollar is outperforming after strong December employment data, while a softer US Dollar backdrop continues to support upside momentum. Markets are now looking ahead to PMI data for further confirmation of the trend.
Market Overview – Fundamental Analysis
The latest AUD/USD analysis highlights a decisive boost from Australia’s labor market. Data showed 65.2K jobs added in December, far exceeding expectations, while the unemployment rate unexpectedly fell to 4.1%. This resilient employment picture has reinforced expectations that the Reserve Bank of Australia may maintain a tighter policy bias for longer.
The Aussie had already been supported by broader US Dollar weakness, driven by geopolitical uncertainty linked to US–EU tensions. Although the Greenback found modest support after a partial reversal on tariff plans, the positive domestic data has kept AUD demand strong.
Looking ahead, traders will focus on Australia–US S&P Global PMI readings due Friday. These indicators could influence near-term sentiment by offering insight into growth momentum across both economies.
Technical Snapshot – Daily/Short-Term Overview
| Indicator | Reading / Value | Implication |
|---|---|---|
| Trend | Uptrend Channel | Bullish structure intact |
| General Bias | Bullish | Higher highs and higher lows |
| Key Resistance | 0.6940 | Major upside barrier |
| Key Support | 0.6673 | Structural floor |
| RSI (14) | Buying Zone | Strong upside momentum |
| MACD | Positive | Trend confirmation |
| Moving Averages | Above all major SMAs | Strong trend alignment |
Technical Outlook:
AUD/USD remains firmly supported within an ascending channel, trading above all key moving averages. Momentum indicators favor further gains, although short-term pullbacks toward trendline support could develop without altering the broader bullish outlook.
Trade Idea (Setup Section)
- Trade Type: Buy Limit
- Entry Level: 0.6721
- Take Profit: 0.6902
- Stop Loss: 0.6617
- Rationale: The pair is consolidating above a former resistance-turned-support area within a strong uptrend, offering scope for continuation higher if trend support holds.
Alternate Scenario:
If AUD/USD breaks and sustains below 0.6670, bullish momentum may weaken, exposing the pair to a deeper corrective move toward the 0.6600 region.
What to Watch Next – Forward Outlook
• Australia–US PMI Data: Signals on growth momentum
• RBA Policy Expectations: Any shift in rate outlook following strong labor data
• US Dollar Direction: Developments in geopolitical and trade headlines
• Global Risk Sentiment: Equity and commodity price movements influencing AUD demand
Key Takeaway
AUD/USD remains well supported near 0.6800, underpinned by robust Australian employment data and a constructive technical setup. The outlook stays bullish as long as the pair holds above 0.6670, with resistance near 0.6940 the next key hurdle.
Q&A – AUD/USD Analysis and Forecast
Q1: Why is AUD/USD rising today?
AUD/USD is gaining after strong Australian jobs data boosted expectations of a tighter RBA policy stance, while broader US Dollar weakness added support.
Q2: What is the current AUD/USD technical outlook?
The AUD/USD technical outlook is bullish, with price trading in an up channel and above all major moving averages.
Q3: What data could impact AUD/USD next?
Upcoming Australia–US PMI releases are key, as they may influence short-term growth expectations and currency sentiment.
This report is for informational and analytical purposes only and does not constitute financial advice.