Aussie seems to be boosted with the positive employment data and further Fed dovish announcement also acts as positive catalyst for AUD/USD.

Australia’s Employment change showed a positive data while crossing 30K forecast and 29.1K prior with 88.7K whereas the Unemployment Rate dropped below 6.3% market consensus and 6.4% previous readouts to 5.8%. It should, however, be noted that the Participation Rate eased from 66.2% to reprint 66.1% level.

Despite predicting a V-shaped economic recovery in the US, the Fed maintained its ultra-dovish tone. It confirmed that it was in no rush to raise interest rates at least through 2023.

“The strong bulk of the committee is not showing a rate increase during this forecast period,” Powell told in a virtual press conference Wednesday following a meeting of the Federal Open Market Committee, adding that the time to talk about reducing the central bank’s asset purchases was “not yet.”

Seven of 18 officials predicted higher rates by the end of 2023 compared with five of 17 at the December gathering, showing a slightly larger group who see an earlier start than peers to the withdrawal of ultra-easy monetary policy, according to fresh quarterly Fed projections.

Further talks that New Zealand and Australia will ease border control also adds support to the Aussie. News that AstraZeneca is up for matching the short deliveries and there are multiple countries outside the European Union (EU) that keep using the covid vaccine impacts the market sentiment positively.

AUD/USD 4 Hour Chart:

Support: 0.7726 (S1), 0.7657 (S2), 0.7615 (S3)

Resistance: 0.7838 (R1), 0.7880 (R2), 0.7849 (R3).

Upbeat Australian employment data and dovish tone of Fed boosted Aussie against greenback. We expect a bullish trend for AUD/USD.