The AUD/USD Gives Back its Gains
Rowan Crosby • 1 min read
The AUD/USD jumped yesterday on a better than expected unemployment rate.
The rate dropped to 4.9% from 5.0% previously and expected, but the number of new jobs grew less than many had predicted at +4.6K vs 15K exp.
The AUD/USD had pushed higher, on the back of a real drop in the USD, which fell after the FOMC gave some more dovish guidance.
However, all of that appears to be forgotten as most market reversed, again led by the Greenback.
The Aussie has settled lower just above the 0.7100 mark in early Asian trade.
The AUD/USD] has spiked higher and through the 0.7150 level, but as I noted yesterday we have a fair bit of resistance overhead at the 0.7200 area. And after trading as high as the 0.7170 mark, price fell back away.
The real lead at the moment continues to be the USD. It has almost reclaimed key resistance and if it does, that will be a bullish sign given the backdrop of the FOMC.
For now, 0.7100 will be the main area of interest for the AUD/USD. With major support at 0.7050 and a big, big level of 0.7000 still to come.