As the week of AUD/USD watching continues, we weren’t disappointed by the action in trade yesterday. The Aussie managed to tumble all the way down to 0.8000 cents throughout Europe and US trade, before finding some support into the close.

We spoke yesterday about how the chart just didn’t look like it wanted to break above 81 cents. And sure enough, price tumbled from that point onwards.

We are now in a trading range between 80 and 81 cents and awaiting the next move.

US Jobs Report

The big mover in markets will no doubt be today’s jobs report. The USD has been struggling and we are looking at how it can find some strength. A strong jobs report might be the answer.

At the FOMC we assumed that the three US rate hikes will be on the cards this year. Although inflation is weaker than the Fed might like at less than 2% YoY. With that in mind, we need a strong number for US jobs.

I’m now focused on the 80 cent mark. If it gives way and the USD finds some strength then I think the AUD/USD is poised to fall in a big way. The run-up really felt out of context, to begin with, and I feel it is overdone.

I’ll be watching for a break of 80 as another opportunity to take a short position