The AUD/USD currency pair traded neutrally near the 0.7160 level on Thursday, following the release of robust US economic data that strengthened the US Dollar. Weekly Initial Jobless Claims in the United States rose slightly to 215,000 from the previous 212,000, a figure still indicative of a resilient labor market and supporting expectations that the Federal Reserve will maintain a cautious, data-dependent approach to monetary policy decisions [1].
Additionally, the latest S&P Global Purchasing Managers Indices (PMIs) exceeded expectations, with the Manufacturing PMI rising to 54.1 from 52.5 and the Services PMI increasing to 51.3 from 49.8. These results signal ongoing expansion in the US economy and contributed to higher US yields, which in turn bolstered the Greenback and exerted pressure on risk-sensitive currencies such as the Australian Dollar [1].
Despite these headwinds, the downside for AUD/USD was limited, as the Reserve Bank of Australia continues to signal a relatively hawkish stance in response to persistent inflation, contrasting with the Federal Reserve's ongoing debate over the timing of future rate cuts. In the short term, however, stronger US data and cautious market sentiment are dominating price action, keeping the AUD/USD pair biased to the downside [1].
From a technical perspective, AUD/USD is trading at 0.7159, stabilizing around the 20-period Simple Moving Average (SMA) and remaining well above the 100-period SMA at 0.7063, which supports the broader uptrend. The Relative Strength Index (RSI) is around 52, indicating a neutral to slightly positive outlook and suggesting consolidation with a mild topside inclination rather than aggressive momentum. Key resistance is noted at 0.7163 and 0.7167, while support levels are found at 0.7159, 0.7137, 0.7133, and the deeper 100-period SMA at 0.7063 [1].
CONCLUSION
Stronger-than-expected US economic data has reinforced the US Dollar, keeping AUD/USD under pressure despite the Reserve Bank of Australia's hawkish signals. The pair remains in a consolidation phase, with technical indicators suggesting limited downside and mild topside potential in the near term.