AUD/USD turns neutral, holding marginally above 0.7700 handle

The AUD/USD pair faded mixed Australian jobs data-led bullish spike to 3-month highs and slipped below 0.7700 handle before recovering few pips to currently trade in neutral territory, around 0.7710-05 band.

During early Asian session on Thursday, the pair gained some fresh traction after better-than-expected rise in the number of employed people during the month of January and a downtick in the unemployment rate. The pair, however, lost its upside momentum as markets seemed disappointed by the details that revealed a drop in full-time employment and strong headline number was primarily driven by a jump in part-time employment. 

Meanwhile, a follow through US Dollar retracement, amid lack of buying interest, lent some support, while a pull-back in the US treasury bond yields further underpinned demand for higher-yielding currencies - like the Aussie, and collaborated towards limiting any further downslide for the major.

Market focus now shifts to a slew of second tier US economic releases – weekly jobless claims, housing starts, building permits and Philly Fed manufacturing index, which would be looked upon to grab some short-term trading opportunities ahead of RBA monetary policy meeting minutes during early Asian session on Friday.

Technical levels to watch

Sustained weakness below 0.7700 handle could get extended towards 0.7680-75 horizontal support below which the pair is likely to head towards 0.7655-50 support area, en-route 0.7625 support area. 

Meanwhile on the upside, renewed strength above 0.7720-25 area now seems to pave way for continuation of the pair’s near-term upward trajectory towards Nov. 2016 daily closing highs resistance near 0.7760 region ahead of 0.7780 resistance. 

    1. R3 0.7777
    2. R2 0.7737
    3. R1 0.7697
  1. PP 0.7657
    1. S1 0.7617
    2. S2 0.7577
    3. S3 0.7537