AUD/USD looks to extend post-NFP bounce towards 0.7550 ahead of US data

AUD/USD consolidates the bounce above 0.7500 amid poor Chinese PMI.
US dollar rebounds across the board, licking post-NFP wounds.
Technical setup points to more recovery gains ahead of US ISM Services.

Dhwani Mehta FXStreet

Having witnessed a solid turnaround from six-month lows of 0.7445 on Friday, AUD/USD is catching a breather so far this Monday, slightly on the defensive amid a broad US dollar comeback.

The greenback is paring back US NFP-led losses, as the risk-off market mood comes to the rescue of the USD bulls. Anxiety over the Fed’s next policy moves after the upbeat NFP report combined with a sharp slowdown in China’s services sector activity enticed investors towards the safety bet US dollar.

Meanwhile, poor Chinese data also weighs on the Aussie dollar while investors refrain from placing any big bets on the Antipodeans ahead of the Reserve Bank of Australia (RBA) monetary policy decision due on Tuesday.

The RBA is likely to kick off dialing back its emergency asset purchases program, despite the lockdown in the nation’s largest city due to an outbreak of the Delta covid variant. The central bank is seen holding rates at a record low of 0.10% this week.

In the meantime, the pair awaits the US ISM Services PMI release for fresh trading incentives, as upbeat Australian Retail Sales for May was largely ignored.

AUD/USD: Technical outlook

The aussie has spotted a bull pennant formation on the four-hourly chary, with a sustained break awaited above the falling trendline resistance above 0.7522 to confirm the bullish continuation pattern.

The buyers will then target the 0.7550 psychological level, beyond which the June 29 high at 0.7571 could be tested.

The Relative Strength Index (RSI) is ticking higher above the central line, suggesting additional upside.

AUD/USD: Four-hour chart

On the other hand, if the falling trendline support at 0.7502 gives way, a test of 21-Simple Moving Average (SMA) at 0.7495 could be tested.

Next on the sellers’ radars will be the multi-month lows of 0.7445.

AUD/USD: Additional levels

AUD/USD

Overview
Today last price	0.7521
Today Daily Change	-0.0003
Today Daily Change %	-0.04
Today daily open	0.7528

Trends
Daily SMA20	0.7607
Daily SMA50	0.7697
Daily SMA100	0.7709
Daily SMA200	0.7571

Levels
Previous Daily High	0.7535
Previous Daily Low	0.7445
Previous Weekly High	0.7603
Previous Weekly Low	0.7445
Previous Monthly High	0.7794
Previous Monthly Low	0.7477
Daily Fibonacci 38.2%	0.7501
Daily Fibonacci 61.8%	0.7479
Daily Pivot Point S1	0.747
Daily Pivot Point S2	0.7413
Daily Pivot Point S3	0.738
Daily Pivot Point R1	0.756
Daily Pivot Point R2	0.7593
Daily Pivot Point R3	0.765

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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