AUDUSD: USD reached its highest level in 8 weeks

The US Dollar Index rose to 104.18, its highest level since December 2023.

The US jobs report released on Friday (February 2) far exceeded market expectations. This information reinforced Fed Chairman Jerome Powell's statement at the end of the agency's policy meeting last week that an interest rate cut in March 2024 was unlikely.

Expert Chris Weston, head of research at Pepperstone, said that the optimistic US jobs report basically showed that an interest rate cut in March 2024 is very fragile.

According to CME's FedWatch tool, traders are assessing just a 20% chance that the Fed could begin easing interest rates in March 2024, compared with nearly 50% a week ago. The possibility of cutting interest rates in May 2024 is also possible.

Currency expert Carol Kong at Commonwealth Bank of Australia (CBA) said that the USD is likely to stabilize at its recent increase.

US Treasury bond yields also skyrocketed due to expectations that interest rates will increase in the long term. Benchmark 10-year yield increased 5 basis points to 4.0829%

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AUDUSD BUY 0.6490- 0.6500

TP1: 0.6530
TP2: 0.6560

SL: 0.6440

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