AUD/USD: holding above 0.7500, bears waiting

AUD/USD Current price: 0.7528

  • Australian employment data overall positive, but short of a game changer for the RBA.
  • Dollar's strength limited the intraday recovery, but bears will be more comfortable below 0.7500.

The AUD/USD pair reached a daily high of 0.7547 at the beginning of the day, helped by positive local data that anyway failed to impress. Australian inflation expectations rose to 3.7% from the previous 3.6% according to estimates from the Melbourne Institute. The monthly employment report showed that the economy added 22,600 new jobs in April, although the unemployment rate ticked higher, to 5.6%. Fulltime employment was sharply up, while part-time jobs decreased by 10K, overall encouraging, but far from a game changer for the RBA. Nevertheless, the greenback found some market favor early Europe, and the pair trimmed its daily gains, to trade around 0.7520 ahead of the US opening.

The pair holds above the 23.6% retracement of its latest decline and now trades above bearish 20 and 100 SMA in the 4 hours chart, while technical indicators neared their mid-lines, now lacking clear directional strength. The downside seems limited as long as the price holds above the mentioned Fibonacci support at around 0.7505, while to the upside a major resistance is the 38.2% retracement of the mentioned rally, at 0.7565 and where the pair topped at the beginning of the week.   

Support levels: 0.7505 0.7470 0.7435

Resistance levels: 0.7565 0.7590 0.7620

View Live Chart for the AUD/USD

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