- The Australian dollar stagnated since the change in employment was 32.2k, in front of the 40K consensus forecast.
- Australia’s unemployment rate rose to 4.1% in March, slightly below the 4.2% market forecast.
- The US dollar received support due to the increase in consumer spending in March.
The Australian dollar (AUD) is quoted on the grounds against the US dollar (USD), breaking a six -day winning streak. The Aud/USD pair is still under pressure after the publication of Australia’s employment data on Thursday, which showed that the unemployment rate rose to 4.1% in March, slightly below the 4.2% market forecast. Meanwhile, the change of employment was 32.2K, in front of the 40K consensus forecast.
The Aud found some support for the best feeling of global risk after the announcement of US President Donald Trump about exemptions for key technological products of the new “reciprocal” tariffs proposed. These exemptions, which include smartphones, computers, semiconductors, solar cells and flat panel screens, greatly benefit the products produced in China, the largest commercial partner in Australia and an important buyer of its raw materials.
The markets remain cautious in the midst of continuous uncertainty around the US commercial policy. The Trump administration is now considering tariffs on semiconductor imports and pharmaceutical products. In the domestic front, the minutes of the April policy meeting of the Bank of the Reserve of Australia (RBA) suggested uncertainty about the time of the next adjustment of interest rates.
While the RBA insinuated that the May meeting could be an appropriate time to reevaluate monetary policy, no firm decision has been made. Currently, the markets are valuing a 25 basic points rate cut in May, with expectations of around 120 basic relief points during the next year. The attention now focuses on Thursday’s employment report, which could offer crucial information about the labor market and guide the next RBA policy movement.
The Australian dollar depreciates while the US dollar bounces due to the increase in consumer spending
- The American dollar index (DXY), which tracks the USD in front of a basket of six main currencies, is listed up at almost 99.60 at the time of writing. The construction permits of the US, the beginnings of housing, the manufacturing index of the Fed of Philadelphia and the initial applications of weekly unemployment subsidy will be published later on Thursday.
- The US retail sales increased 1.4% in March, followed by the increase of 0.2% observed in February. This figure was better than the 1.3%estimate.
- A recent consumer’s feeling survey by the Bank of the Federal Reserve of New York shows a sudden increase in the number of households that expect greater inflation, weaker labor perspectives and credit conditions in deterioration in the coming months.
- The president of the Atlanta Fed, Raphael Bostic, commented during the early market session that the US Central Bank still has a long way to go to achieve its inflation target of 2%, which generates doubts about market expectations for additional cuts of interest rates.
- The US consumer price index (ICC) was softened to 2.4% year -on -year in March, lowering 2.8% in February and below the market forecast of 2.6%. The underlying ICC, which excludes food and energy prices, increased 2.8% annually, compared to the previous 3.1% and below the 3.0% estimate. In monthly terms, the CPI general fell 0.1%, while the underlying ICC rose 0.1%.
- The annualized growth rate of six months of the advance index of Westpac of Australia, which forecasts the economic impulse in relation to the trend during the next three to nine months, softened 0.6% in March from 0.9% in February.
- China’s economy grew at an annual rate of 5.4% in the first quarter of 2025, matching the pace observed in the fourth quarter of 2024 and exceeding 5.1% market expectations. In quarterly terms, GDP increased 1.2% in the first quarter, after a 1.6% increase in the previous quarter, being below the predicted gain of 1.4%.
- Meanwhile, China’s retail sales shot 5.9% year -on -year, exceeding 4.2% expectations and increasing from 4% in February. Industrial production also exceeded expectations, increasing 7.7% compared to the 5.6% and 5.9% prognosis.
The Australian dollar proves immediate support at 0.6350 even though the bullish bias remains intact
The aud/USD torque is quoted near level 0.6360 on Thursday, with technical indicators in the daily chart that suggest a bullish bias. The torque is maintained above the nine -day exponential (EMA) mobile average, while the 14 -day relative force (RSI) index remains above the neutral level of 50, reinforcing the positive impulse.
On the positive side, the key resistance is observed at the psychological level of 0.6400, followed by the maximum of four months of 0.6408, last reached on February 21.
The initial support is found in the 9 -day EMA around 0.6285. A rupture below this level could undermine the upward trend in the short term and potentially expose to the torque to a higher decline towards the region of 0.5914 – his lowest level since March 2020 – and the critical psychological level on 0.5900.
AUD/USD: Daily graphic
Australian dollar Price today
The lower table shows the percentage of change of the Australian dollar (AUD) compared to the main currencies today. Australian dollar was the weakest currency against the US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.17% | 0.15% | 0.51% | 0.13% | 0.15% | 0.28% | 0.48% | |
| EUR | -0.17% | -0.07% | 0.31% | -0.08% | -0.04% | 0.06% | 0.27% | |
| GBP | -0.15% | 0.07% | 0.38% | -0.01% | 0.03% | 0.14% | 0.35% | |
| JPY | -0.51% | -0.31% | -0.38% | -0.40% | -0.37% | -0.35% | -0.05% | |
| CAD | -0.13% | 0.08% | 0.01% | 0.40% | 0.05% | 0.14% | 0.36% | |
| Aud | -0.15% | 0.04% | -0.03% | 0.37% | -0.05% | 0.11% | 0.31% | |
| NZD | -0.28% | -0.06% | -0.14% | 0.35% | -0.14% | -0.11% | 0.21% | |
| CHF | -0.48% | -0.27% | -0.35% | 0.05% | -0.36% | -0.31% | -0.21% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Australian dollar of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the Aud (base)/USD (quotation).
Faqs Australian dollar
One of the most important factors for the Australian dollar (Aud) is the level of interest rates set by the Australian Reserve Bank (RBA). Since Australia is a country rich in resources, another key factor is the price of its greatest export, iron mineral. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and commercial balance. The feeling of the market, that is, if investors are committed to more risky assets (Risk-on) or seek safe shelters (Risk-Off), it is also a factor, being the positive risk-on for the AUD.
The Australian Reserve Bank (RBA) influences the Australian dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of the interest rates of the economy as a whole. The main objective of the RBA is to maintain a stable inflation rate of 2% -3% by adjusting the interest rates or the low. Relatively high interest rates compared to other large central banks support the AU, and the opposite for the relatively low. The RBA can also use relaxation and quantitative hardening to influence credit conditions, being the first refusal for the AU and the second positive for the AUD.
China is Australia’s largest commercial partner, so the health of the Chinese economy greatly influences the value of the Australian dollar (Aud). When the Chinese economy goes well, it buys more raw materials, goods and services in Australia, which increases the demand of the AU and makes its value upload. The opposite occurs when the Chinese economy does not grow as fast as expected. Therefore, positive or negative surprises in Chinese growth data usually have a direct impact on the Australian dollar.
Iron mineral is the largest export in Australia, with 118,000 million dollars a year according to data from 2021, China being its main destination. The price of iron ore, therefore, can be a driver of the Australian dollar. Usually, if the price of iron ore rises, the Aud also does, since the aggregate demand of the currency increases. The opposite occurs when the price of low iron ore. The highest prices of the iron mineral also tend to lead to a greater probability of a positive commercial balance for Australia, which is also positive for the AUD.
The commercial balance, which is the difference between what a country earns with its exports and what it pays for its imports, is another factor that can influence the value of the Australian dollar. If Australia produces highly requested exports, its currency will gain value exclusively for the excess demand created by foreign buyers who wish to acquire their exports to what you spend on buying imports. Therefore, a positive net trade balance strengthens the AUD, with the opposite effect if the commercial balance is negative.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
