The AUD/USD has been consolidating around the 0.7100 mark, after a bit of rebound. For the most part, the trend is clearly to the downside and there are a few events this week that might help it on its way.
The big one is most certainly the employment report later in the week. We are looking at an increase of 15K jobs last month. If you recall, we had a big beat last month when we saw a jump of 44K jobs. The number was a winner, but ultimately the downtrend took over.
The RBA minutes might be considered to be a big factor, but in reality, we know exactly where we stand at the moment.
There is little to no chance of a rate hike anytime soon and the RBA are simply watching and waiting for signs of life. If anything there is pressure to cut as many banks are hiking rates out-of-cycle.
Aussie Outlook
The AUD/USD is still consolidating around 0.7100. The major level at 0.7000 is my downside target but the swing low at 0.7050 will likely offer a fair bit of support.
I’m more than happy to sell a bounce near the 0.7200 level, but we might be hard pressed to get anywhere near that mark.
The USD is really calling the shots at the moment, which is taking a lead from US bonds. So it is fair to say the AUD/USD is just following the leader at the moment.
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