The AUD/USD has not been able to hold above key resistance at 0.7200 and now finds itself looking like it wants to try and test support.

The sentiment in Australia at the moment isn’t very positive at all and that is clearly one reason that the AUD has been so sluggish.

It has also been pushed around as a risk-on trade when things look reasonably positive with China. Unfortunately, yesterday things took a negative turn, which led to some further weakness.

We also had negative headlines recently on interest rates, with many not believing we’ll see a hike in 2019 at all.

That all adds up to a weak AUD and the only data point that could change things is tomorrow’s jobs report.

We are looking at 18,000 new jobs created last month and a positive number would be a good sign for a struggling economy. Ironically it has been the state of employment that has been one of the strongest factors recently. The weakness has been elsewhere in things like housing prices.

Aussie Outlook

The AUD/USD has held the major level at 0.7200 and is now pushing back to the key support zones. 0.7100 will clearly offer some buying.

The key support below is 0.7050 and then 0.7000.

0.7300 is R2 and the most recent highs sitting at 0.7400.