Skip to content AUDUSD Fundamental Analysis – 17-October-2024
The Australian dollar climbed to approximately $0.67 on Thursday, recovering strongly from recent five-week lows. This boost was driven by an encouraging domestic jobs report, which lifted the overall market mood and supported the Reserve Bank of Australia’s (RBA) more assertive stance on future monetary policies.
Recent data revealed a significant job increase: 64,100 positions were added in September, more than double the expected 25,000. This robust job growth kept the unemployment rate steady at 4.1%.
The AUD/USD 4-hour chart below demonstrates the price, support, and resistance levels.
Reserve Bank’s Hawkish Stance Strengthens
Following the release of the positive jobs data, expectations for an RBA rate cut in December diminished.
Adding to the hawkish climate, RBA Deputy Governor Sarah Hunter highlighted earlier that the central bank is determined to control inflation, which continues to see upward pressure.
This resolve underscores the RBA’s commitment to stabilizing the economy amidst persistent price increases.
External Pressures on the Aussie Dollar
Despite the domestic economic upswing, the Australian dollar faces ongoing challenges from international factors. A strengthening U.S. dollar, driven by anticipation that the Federal Reserve might slow down on rate cuts, puts pressure on the Aussie.
Additionally, economic and policy uncertainties in China, Australia’s major trading partner, continue to influence the Australian currency. The Aussie often substitutes the Chinese yuan in global markets, making it sensitive to changes in Chinese economic conditions.
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