Australian dollar posted a massive rally on better-than-expected jobs report for February. The AUD/USD pair gained 1.35% on Wednesday to test the major resistance level at the 0.7300 mark.
The Australian Bureau of Statistics published the employment data for February month which exceeded the market expectations. The market forecasts for the unemployment rate were 4.1% while the actual reading came out to 4.0% for the February month. Similarly, the market forecast for employment change was 37,000 while the actual reading came out to 77,400 for the same time period.
The positive employment data suggests that the Australian economy has recovered significantly from the pandemic. Consequently, consumer spending is also expected to rise in the next quarter which will further strengthen the Australian economy. The Russia-Ukraine crisis has contributed to the bullish rally in commodity prices in the last few weeks. The Australian dollar benefited heavily from this rally by gaining 2.7% against the US dollar in the last month.
Meanwhile, the dollar index fell by over 0.6% on Wednesday after The US Federal Reserve raised interest rates by 0.25 basis points. This was not much of a surprise to the investors as it was a very much anticipated decision.
Currently, the AUD/USD pair is trading up by 0.2% on Thursday morning in the Asian trading session. According to financial analysts, the AUD/USD price is expected to benefit from the order of the International Court of Justice in the short term. The International Court of Justice issued an order to the Russian government to suspend the invasion of Ukraine at the earliest.
The price is trading above the 9-day and 18-day exponential moving average which indicates the bullish sentiment in the market. Therefore, one must look for potential buying opportunities in AUD/USD pair above the 0.7300 level to target the next immediate resistance level at the 0.73500 mark.