AUD/USD Forecast: Choppy Trading Awaits Catalyst from NFP and ISM Reports

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The AUD/USD currency pair has been trading choppily in recent weeks as traders look for a catalyst to provide direction. The pair has been stuck in a tight range, with the Australian dollar (AUD) fluctuating against the US dollar (USD) but failing to make any significant moves in either direction.

The upcoming US non-farm payrolls (NFP) report could be a catalyst for the pair. The NFP report is a closely watched economic indicator that measures the number of new jobs created in the US economy during the previous month. A strong NFP report could boost the USD, which could weigh on the AUD/USD pair.

Another potential catalyst for the AUD/USD pair could be the Institute for Supply Management (ISM) manufacturing index. The ISM manufacturing index is a crucial indicator of economic activity in the US, and a strong reading could boost the USD and put pressure on the AUD/USD pair.

“IGCS shows retail traders are currently LONG on AUD/USD, with 59% of traders currently holding long positions,” according to DailyFX.

Overall, traders should expect choppy trading in the AUD/USD pair as investors wait for a catalyst to provide direction. Any significant move in either direction is likely triggered by an important economic event or data release.

“Daily AUD/USD price action highlights market cautiousness on this particular currency pair with the Relative Strength Index (RSI) lingering near the midpoint 50 level. Today’s daily candle currently reflects that of a long upper wick and traditionally leads to the subsequent downside, making today’s close key for short-term directional bias. As mentioned above, the NFP is the main driver for today, and an estimated beat will likely give the USD added support exposing the 0.6700 psychological handles once more,” said DailyFX.

In conclusion, the AUD/USD currency pair has been trading choppily as traders look for a catalyst to provide direction. The pair has been stuck in a tight range, with the Australian dollar fluctuating against the US dollar but failing to make any significant moves in either direction. The US non-farm payrolls and the Institute for Supply Management, manufacturing index reports could be potential catalysts for the pair. Still, traders should also pay attention to the economic data coming out of Australia.

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