AUD/USD post moderate gains on solid US data, weak Aussie PMI

• Australian Dollar appreciates against USD, driven by positive sentiment and strong US economic data.
• US Dollar Index falls 0.27% after Fed keeps rates steady and signals slower Quantitative Tightening.
• Chair Powell stresses data-dependent policy amid slow inflation progress.
• Australia's Judo Bank Services PMI disappoints investors, coming at 53.6, down from 54.2, missing estimates.
• AUD/USD traders await US labor data, including Nonfarm Payrolls and Unemployment Rates.

The Australian Dollar registered solid gains of 0.65% against the US Dollar on Thursday, courtesy of an upbeat market mood amid solid economic data from the United States (US). However, the Federal Reserve’s (Fed) latest monetary policy decision is still weighing on the Greenback, which finished the session losing 0.27%, as depicted by the US Dollar Index (DXY). The AUD/USD trades at 0.6567, up by a minuscule 0.03%.

AUD/USD slightly up as traders digest Federal Reserve decision and Powell comments

On Wednesday, the Fed decided to hold rates unchanged and opened the door to reducing the Quantitative Tightening (QT) pace. Additionally, the Fed Chair said that it’s not appropriate to reduce interest rates as inflation progresses stalled. He emphasized the data-dependent stance, saying they would decide monetary policy “meeting by meeting.”

Data-wise, the US Balance of Trade reported the deficit narrowed -0.1% from $-69.5 billion to $-69.4 billion, falling shy of the expected $-69.1 billion. Other data showed that Factory orders improved from 1.2% to 1.6% MoM in March as projected, while Americans filling for unemployment benefits for the last week rose by 208K, less than the 21K expected, unchanged from the previous reading.

In the meantime, AUD/USD traders are looking for the release of the Judo Bank Services PMI Final reading for April, which is expected to drop from 54.4 to 54.2. On the US front, April’s US Nonfarm Payrolls are expected to rise 240K vs. 303K in March. The Unemployment Rate is estimated to stay at 3.8%, while Average Hourly Earnings would likely remain unchanged at 0.3% MoM.

AUD/USD Price Analysis: Technical outlook

The AUD/USD daily chart suggests the pair is neutrally biased, as price action meanders around flat 50, 200, and 100-day moving averages (DMAs). However, if buyers lift the pair above the 100-DMA at 0.6580, it will clear the path toward 0.6600. Further upside is seen once broken, with the next supply zone seen at March 8 high at 0.6667. Conversely, a drop below the confluence of the 200 and 50-DMAs at around 0.6520 could pave the way to challenge the current week's low of 0.6465.