AUD/USD: Watch employment report tomorrow – OCBC

FXStreet Insights Team FXStreet

Australian Dollar’s (AUD) decline slowed this week as USD bulls took a breather, while on tariff aspect, there was report that the Trump team is considering more gradual pace of increases. AUD was last at 0.6190 levels, OCBC's FX analyst Christopher Wong notes.

Rebound risks not ruled out

"Rebound in Chinese equities did provide some relief for risk assets. This week’s focus on data – employment report (Thu) before next week’s much anticipated US presidential inauguration. A hotter print may lend strength to AUD momentum."

"Elsewhere, markets are keen to find out how soon and what magnitude and scope are for tariffs. Worries of tariffs may keep sentiment pressured and AUD trading soggy. But at the same time, a less drastic approach or any delay to tariff implementation could see risk proxies take an extended breather."

"Daily momentum is mild bullish while RSI rose. Rebound risks not ruled out but may require the blessing of a robust AU labour market report and for China to hold up. Resistance at 0.6210 (21 DMA), 0.6320 (23.6% fibo retracement of 2024 high to 2025 low) and 0.6360 (50 DMA). Support at 0.6130 (recent low), 0.60 psychological level."

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FXStreet Insights Team

FXStreet

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