AUD/USD Price Analysis: Aussie bulls need validation from 0.6550 and US employment data
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- AUD/USD picks up bids to refresh intraday high, snaps two-day downtrend.
- Upbeat China Caixin Manufacturing PMI, US debt-ceiling bill passage in the House favor bulls.
- Bulls sneak in from seven-month-old descending support line but multiple hurdle prod further upside.
- Bearish MACD signals, challenges to risk-on mood and hawkish Fed bets keep Aussie sellers hopeful.
AUD/USD prints the first daily gains in three around 0.6520 as cautious optimism in the market joins the mixed concerns about Federal Reserve (Fed) to recall buyers early Thursday.
However, the looming employment clues from the US and impending voting on the US debt-ceiling bill in the Senate check the risk-barometer buyers. It’s worth noting that upbeat China’s upbeat Caixin Manufacturing PMI for May also underpinned the pair’s upside moves.
Technically, the AUD/USD pair bounces off a descending support line from December 20, 2022, close to the 0.6500 round figure by the press time. The same joins the aforementioned catalysts to allow the Aussie pair to aim for a three-week-old descending resistance line, near 0.6545, to restrict the immediate upside of the quote.
Following that, the 61.8% Fibonacci retracement level of the pair’s October 2022 to February 2023 upside, near 0.6550, quickly followed by the 10-DMA hurdle of 0.6555, could tease the AUD/USD sellers.
It’s worth observing that a successful break of 0.6555 can escalate the quote’s short-term rebound.
Meanwhile, AUD/USD sellers need to conquer the aforementioned support line of around 0.6500 for conviction. Even so, the latest bottom of around 0.6455 can challenge the bears before returning control to them.
AUD/USD: Daily chart
Trend: Limited upside expected
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