AUD/USD Daily Forecast – Australian Dollar Moves Higher Ahead Of The Weekend

AUD/USD Video 05.02.21.

U.S. Dollar Is Losing Ground Against Australian Dollar

AUD/USD is trying to get back above the 50 EMA at 0.7615 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index has recently declined below 91.50, but it remains to be seen whether it will be able to develop downside momentum. The nearest support level for the U.S. Dollar Index is located at 91.30. If the U.S. Dollar Index gets to the test of this support level, AUD/USD will get more support.

Australia has recently reported that Retail Sales declined by 4.1% month-over-month in December after growing by 7.1% in November. Analysts expected that Retail Sales would decline by 4.2% so the report was mostly in line with analyst expectations.

Today, foreign exchange market traders will have a chance to take a look at additional data on the U.S. job market which includes Non Farm Payrolls and Unemployment Rate reports.

The recent ADP Employment Change and Initial Jobless Claims reports indicated that the job market was recovering from the blow dealt by the second wave of the virus. If Non Farm Payrolls and Unemployment Rate reports exceed analyst expectations, the U.S. dollar may get an additional boost.

Technical Analysis

AUD/USD is currently trying to settle above the nearest resistance level which is located at the 50 EMA at 0.7615. If this attempt is successful, AUD/USD will move towards the next resistance level at 0.7635.

In case AUD/USD gets above the resistance at 0.7635, it will head towards the next resistance level which is located at the 20 EMA at 0.7660.

On the support side, a move below the 50 EMA at 0.7615 will open the way to the test of the next support level at 0.7600. In case AUD/USD declines below the support at 0.7600, it will head towards the support at 0.7575. If AUD/USD gets below this level, it will gain additional downside momentum and head towards the support at 0.7540.

For a look at all of today’s economic events, check out our economic calendar.