Due to market hesitancy, AUD/USD bulls stop at 0.7250 on Friday. Contradictory Aussie data joins a cautious atmosphere ahead of the US jobs report for May and worries about Australia’s important client China.
Australia’s AiG Construction Performance Index fell from 55.9 to 50.4. Aussie Home Loans and Investment Lending for Homes dropped 5.8% and 4.8% from March’s 0.9% and 2.9%.
May’s S&P Global Services PMI rose to 53.2. Last month’s S&P Global Composite PMI was 52.5. Early job report signs and decreasing yields dragged down the euro Wednesday. The US Dollar Index (DXY) plummeted the most in two weeks after two days of Fed hawkishness. Thursday’s ADP Employment Change was 128K, considerably below the 300K predicted and 202K lower than the prior report. Weekly initial unemployment claims declined from 210K to 200K. Nonfarm Productivity and Unit Labor Costs improved in Q1 to -7.3%t and 12.6%, respectively. US Factory Orders fell 0.3% in April, below March’s 1.8% and the forecasted 0.7%.
Pre-NFP jitters and China and UK holidays may limit AUD/USD moves. US data may stimulate buyers. Title US NFP is predicted to fall from 428K to 325K, and ISM Services PMI from 57.1 to 56.4. AUD/USD buyers are testing the 0.7315 resistance line of a three-week uptrend.
Conclusion
Early European trading has the AUD/USD at 0.7253-0.7262. After missing 0.7300, the pair corrected, appreciating the positive growth of AUD/USD.