AUD/USD stages a technical rebound after yesterday’s sell-off
|Following a sharp reversal on Thursday, the AUD/USD pair staged a tepid recovery bounce and is currently trading at session high near 0.7635 region.
Despite of a broad based greenback strength, as measured by the overall US Dollar Index, the pair's recovery on Friday could be termed as a technical bounce following Thursday's steep losses led by disappointing Australian jobs report, which reaffirmed RBA concerns of weaker labor market conditions and downward surprise in inflation.
Hence, investors would now focus on the upcoming release of Australian CPI print for Q3, due next week, which if disappoints would increase probability of further monetary easing by RBA and attract fresh selling pressure around the AUD/USD major.
In absence of any major market-moving releases on Friday, the pair could continue taking clues from the broader sentiment surrounding the greenback and the overall market risk sentiment.
Technical levels to watch
From current levels, a follow through buying interest seems to lift the pair beyond 0.7650 towards 0.7665 horizontal resistance, which is closely followed by another strong hurdle near 0.7685 region. On the downside, sustained weakness below 0.7620 support is likely to drag the pair below 0.7600 handle towards its next support near 0.7580 region.
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