Australian Dollar weakens as AUD/USD remains pressured below 0.6300

The AUD/USD pair remained depressed during the American session below the 0.6300 barrier as a stronger US Dollar (USD) and disappointing employment data from Australia continued to weigh. Technical signals have turned increasingly bearish, as indicators deteriorate and price action breaks below important moving averages.

Daily digest market movers: Australian Dollar softens as US Dollar stays firm post-Fed

The Australian Dollar (AUD) extended losses for a second session on Friday, pressured by both external and domestic drivers.

The release of a disappointing Australian jobs report, which showed the economy shed 52.8K positions in February, well below expectations for a 30K increase, sparked fresh concerns about labor market weakness.

The US Dollar built on its mid-week rebound, driven by expectations that the Federal Reserve (Fed) will keep interest rates elevated for longer, following higher inflation projections in the latest Summary of Economic Projections.

Although the Fed kept its policy rate unchanged, the updated tone leaned more hawkish, providing a lift to the Greenback. Geopolitical tensions and persistent uncertainty over US trade policy also added to safe-haven flows, benefitting the US Dollar.

Comments from US President Donald Trump about potential new tariffs and retaliatory trade measures have kept investors cautious, a factor that particularly affects risk-sensitive currencies like the Aussie, given Australia’s heavy trade exposure to China.

From a domestic monetary policy perspective, the weak employment data increases the likelihood of further easing from the Reserve Bank of Australia (RBA). The RBA had already cut rates by 25 basis points in February, and analysts now speculate up to 75 basis points of additional easing could be warranted if economic data continues to disappoint.

AUD/USD Technical Analysis: Negative momentum deepens with key levels breached

The AUD/USD pair continued to move lower during Friday’s American session, hovering near the 0.6270 support zone, with bearish pressure dominating the day. The pair remains firmly below the 20-day and 100-day Simple Moving Averages, confirming a deteriorating technical structure.

The Moving Average Convergence Divergence (MACD) indicator printed a new red bar, while the Relative Strength Index (RSI) dropped sharply to 44, staying within negative territory. Both signals point to momentum continuing to favor the downside.

In terms of key levels, immediate support is seen around 0.6250, and a break below could trigger a further decline toward 0.6200. On the upside, resistance lies near 0.6310, followed by a more significant barrier at 0.6340, where the pair might face selling pressure