Aussie under pressure, job data next

The Australian dollar is down considerably in the Wednesday session. Currently, the pair is trading at 0.7703, down 0.58% on the day.

Australian employment expected to tick higher

Investors are expecting a modestly positive reading for the February employment data (Thursday, 00:30 GMT). The economy is projected to have created 30.5 thousand new jobs, little changed from the gain of 29.1 thousand last month. Job created has slowed dramatically since the sparkling gain of 278 thousand in October, but remains in positive territory. The unemployment rate is expected to drop from 6.4% to 6.3%, which would mark a fourth successive drop. Unless these releases are way off the estimates, the Australian dollar’s response to these numbers should be muted.


Market eyes key FOMC meeting

All eyes are on the FOMC meeting later this evening (18:00 GMT). The policy announcement is the most important event risk of the week and should be treated as a market-mover. FOMC members are meeting for the first time since inflation expectations have risen, sending US yields sharply higher. Fed Chair Powell hasn’t expressed any concerns about the recent rise in US Treasury yields or higher inflation, but will he convey the same message tonight? If Powell states that he has concerns about higher yields, as we saw with the ECB, then yields could sink and drag the US dollar lower. Powell is expected to reiterate that the Fed continues to have a dovish stance, but at the same time growth and inflation forecasts are expected to be revised upwards. The chairman is walking a fine line, as he will need to reassure the market that the economy is improving while dampening concerns about the economy overheating.


AUD/USD Technical


AUD faces resistance at 0.7832, followed by resistance at 0.7906. On the downside, 0.7652 has weakened and could face pressure if the AUD loses more ground. The next support level is at 0.7546

For a look at all of today’s economic events, check out our economic calendar.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.