AUD/USD rose to near 0.7160 on Wednesday and traded around 0.7167 ahead of Australia’s March labour market report. The move came as markets weighed mixed US economic data and the wider US Dollar backdrop.
The US Dollar struggled to build on gains as Middle East tensions supported demand for safety, while US yields steadied. This helped the Australian Dollar remain firm.
Australia’s report is expected to show around 20K jobs added in March. The Unemployment Rate is forecast at 4.3% and the Participation Rate at 66.9%.
On the four-hour chart, the pair is above the 20-period SMA at 0.7102 and the 100-period SMA at 0.6974. Nearby levels at 0.7159, 0.7139 and 0.7133 sit under the market, while the RSI (14) is near 73.
Initial resistance is at 0.7169. Support starts at 0.7159, then 0.7139 and 0.7133, with deeper support at 0.7102 and 0.6974.
The technical analysis section was produced with help from an AI tool.
The Australian dollar is showing strength, driven by a surprisingly robust labor market and a softer US dollar. Australia’s unemployment rate recently fell to 3.7% in March 2026, with the economy adding over 45,000 jobs, far exceeding forecasts. This resilience in our local economy comes as recent US inflation data cooled slightly, shifting expectations toward a Federal Reserve rate cut later this year.
We saw a similar setup back in early 2025 when strong employment figures propelled the AUD/USD pair through the 0.7100 level. Back then, a hesitant US dollar provided the tailwind needed for a significant rally. This historical pattern suggests that strong local data, when combined with a wavering greenback, creates a powerful buying opportunity for the Aussie.
For those anticipating further gains, buying call options with a strike price near 0.6800 for the coming weeks offers a defined-risk way to capture potential upside. Selling out-of-the-money put spreads could also be considered to collect premium, betting that support will hold on any minor dips. These strategies position for a continued climb based on the diverging economic outlooks.
However, we must also consider the risk of a pullback, as we saw in the 2025 setup where overbought signals warned of a pause. Buying protective puts with a strike below the recent lows near 0.6680 could hedge long positions against a sudden reversal. Global uncertainty, reflected in the VIX index which has been sensitive to supply chain reports, warrants this caution.
Technically, the pair is facing immediate resistance near the 0.6820 mark, a level that capped rallies back in February 2026. A decisive break above this could open the path towards the 0.6900 psychological level. Key support now rests at the 0.6700 area, which has proven to be a solid floor over the past month.
