AUD/USD Daily Analysis 20/3/2026

The Australian dollar remained strong on Thursday, nearing the key 0.7100 area, primarily due to a sharp sell-off in the US dollar. Furthermore, mixed results from the Australian employment report, coupled with recent positive data from China, continued to support the pair's strong upward momentum. After falling more than 1% in the previous session, investors assessed the latest employment report. The data showed a surge of 48,900 jobs in February, well above the predicted 20,000, highlighting the continued resilience of the labor market. However, the unemployment rate unexpectedly rose to 4.3%, revealing a more complex situation. Nevertheless, this unemployment rate remains at historically low levels, reinforcing the Reserve Bank of Australia's view that the economy can withstand tighter policy. While their impact on interest rate expectations was minimal, the market remains divided on the possibility of another rate hike in May. Meanwhile, the central bank warned that the escalation of the Middle East wars poses a substantial risk to the domestic economy and hinted at a potential for a more severe global shock, with persistently high inflation potentially putting pressure on some households and borrowers. However, they also emphasized that Australia's financial system remains generally resilient.