Australian Dollar steady as investors asses labor market figures

• AUD/USD shows an increase on Thursday, climbing to 0.6630.
• The RBA maintains its hawkish position, potentially balancing the downside.
• The rising Australian Unemployment Rate could affect the Aussie’s performance.

The AUD/USD pair experienced an increase of 0.45% during Thursday’s session, settling near 0.6630. Despite the rise in Australia’s Unemployment Rate in July, strong labor market figures from the country can potentially support the AUD. In addition, the hawkish stance of the Reserve Bank of Australia (RBA) also has a significant impact on the stability of the Aussie.

Relying on the mixed Australian economic outlook and increasing inflation, the RBA’s consistent hawkish position has led the markets to predict only 25 bps of easing for 2024.

Daily digest market movers: Aussie sees improvement and shrugs off soft Unemployment figures

• Thursday saw an upbeat day for the AUD/USD pair, even in the face of a rising Unemployment Rate from 4.1% to 4.2%, according to the Australian Bureau of Statistics (ABS).
• Despite this, the strong performance of the Australian Employment Change and Full-Time Employment results, which both surpassed expectations, helped support the AUD.
• Meanwhile, the RBA continues to maintain its hawkish stance, and it all points out that it may be the last among the G10 central banks to implement interest rate cuts.
• On the contrary, the Federal Reserve (Fed) seems poised to facilitate easing in the foreseeable future, a disparity that can potentially benefit the AUD/USD pair in the months to come.

AUD/USD technical outlook: AUD/USD traders exhibit resilience, outlook remains hopeful

On the technical side, the AUD/USD pair reflects a degree of volatility with the Relative Strength Index (RSI) wavering around 54, indicating a primarily neutral momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) prints flat green bars, contributing to the neutral to bullish outlook.

Key support levels are detected at 0.6560 and 0.6500, whereas resistance appears near the 0.6640 and 0.6600 regions. The latter represents the 100 and 200-day Simple Moving Average (SMA) convergence, which is acting as strong support in recent sessions.