The AUD/USD has started the day strongly thanks to a better than expected jobs report.

Last month there were 39.1K new jobs created vs 15K expected. A huge beat here and the AUD/USD has been running hard into the 0.7200 resistance level.

The one area of strength in the Aussie economy has been the state of employment. That was confirmed today and comes despite yesterday’s weak wage growth figures.

However, a dampener has come from one of Australia’s leading banks, Westpac, which is now calling for two rate cuts this year adding to the bear case for the AUD.

So I’m not sure which will win the day, but we do have some powerful catalysts for the time being.

Aussie Outlook

The AUD/USD tested the major level at 0.7200 but wasn’t able to hold on this morning and is now back to unchanged.

0.7050 and then 0.7000 are my next two key support levels below, with 0.7100 turning into key support.

0.7200 is R1 and 0.7300 is R2 and the most recent highs sitting at 0.7400.