The Aussie rose against the greenback on expectations the Feds will increase the interest rate in the next meeting. Further, Reserve Bank of Australia Governor Glenn Stevens is betting a stronger currency will help contain inflation and allow him to extend an interest-rate pause to help the economy recover from a possible first-quarter slump.
The Australian dollar has started its correctional movement on Tuesday session versus the US dollar, which was triggered by the Australian fundamental data that showed unexpectedly recorded a trade deficit.
Furthermore, the Aussie weakened 0.2 percent to $1.0344 after reaching a record high of $1.0417 yesterday. Glenn Stevens, Governor of the Reserve Bank of Australia, held the overnight cash target rate at 4.75 percent for a fourth straight meeting.
On Thursday, The Australian economy will continue releasing important fundamental data, where it will release unemployment rate for the month of March at 01:30 GMT, which is expected to show an actual reading of 5.00% as the previous.
We can see that the economy will add more jobs 24,000 workers in March, compared with the previous -10100 workers, as energy spurs investment spending companies such as Chevron Corp. project, generating more than 5,000 jobs, which could support the pair to rise.
On the other hand, the US economy will issue initial jobless claims, where the number of people filing for first-time claims for the state unemployment insurance has reached 388,000,000.
We can see that the Australian dollar will incline against majors, as a cheerful data confirmed the economy will accelerate this year.
Originally posted here
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