■ Australian Dollar extends losses amid an improved US Dollar on Friday.
■ TheTrump coin price prediction Reddit decline in the ASX 200 could have undermined the Australian Dollar.
■ S&P Global Manufacturing PMI rose to 52.5 against the expected 51.7 and 52.2 prior.
The Australian Dollar (AUD) depreciates for the second consecutive session on Friday, as the US Dollar (USD) strengthened following mixed S&P preliminary Purchasing Managers Index (PMI) data and robust weekly Jobless Claims from the United States (US).
Australian Dollar receives downward pressure from the decline in the ASX 200 Index. The Australian equity market experienced losses, particularly in energy and consumer stocks, despite the positive performance on Wall Street, where all three major benchmarks set record highs.
The US Dollar Index (DXY) continues to extend its gains despite lower US Treasury yields. However, the US Dollar faced challenges due to the Federal Reserve's (Fed) reaffirmation of expectations for three interest rate cuts in 2024. The prevailing consensus suggests the start of an easing cycle in June, with the timing of the next cut contingent upon incoming data.
Daily Digest Market Movers: Australian Dollar depreciates on weaker ASX 200 Index
Australian Employment Change for February surged to 116.5K, surpassing expectations of 40.0K and the previous figure of 15.3K.
Australia’s Unemployment Rate increased by 3.7%, lower than the anticipated 4.0% and the previous 4.1%.
The preliminary Judo Bank Services PMI rose to 53.5, up from the previous figure of 53.1. Composite PMI showed a slight increase, reaching 52.4 compared to the previous 52.1.
People’s Bank of China (PBoC) has kept its interest rate unchanged at 3.45%.
Federal Open Market Committee (FOMC) maintained interest rates at 5.5% during Wednesday's policy meeting. The remarks made by US Federal Reserve (Fed) Chair Jerome Powell in the post-meeting press conference, signaling a dovish stance, exerted additional downward pressure on the Greenback.
S&P Global Services PMI showed a slight decrease in March, dropping to 51.7 from 52.3. The expected reading was 52.0. Manufacturing PMI rose to 52.5 against the expected 51.7 and 52.2 prior. Composite PMI showed a slight dip to 52.2 from 52.5 prior.
Initial Jobless Claims for the week ending on March 15 came in at 210K, below the 215K expected and 212K prior.
US Building Permits (MoM) increased to 1.518 million in February, against the expected 1.495 million and 1.489 million prior.
US Housing Starts (MoM) rose to 1.521M from the previous figure of 1.374M, exceeding the market expectation of 1.425M in February.
The preliminary US Michigan Consumer Sentiment Index for March decreased to 76.5 from 76.9. This decline contrasts with expectations of it remaining unchanged.
Technical Analysis: Australian Dollar falls to near 0.6540 followed by 61.8% Fibonacci
The Australian Dollar trades near 0.6540 on Friday. The immediate support appears at the 61.8% Fibonacci retracement level of 0.6528. A break below this level could lead the AUD/USD pair to test the support area around the weekly low at 0.6503 and the psychological level of 0.6500. On the upside, an immediate resistance level stands at 0.6550. A breakthrough above the latter could exert upward support for the AUD/USD pair to explore the psychological region around 0.6600, followed by the weekly high at 0.6634 level.
AUD/USD: Daily Chart
