- AUD/USD couldn’t benefit much from the greenback weakness as risk-off sentiment amid US-China trade worries capped upside momentum.
- Markets also remain cautious ahead of the key Australian employment statistics.
While trade woes and lack of data stopped AUD/USD from cheering the USD weakness on the previous day, the Aussie pair trades little positive near 0.7010 ahead of the monthly Australian employment data on early Thursday morning in Asia.
The US Dollar (USD) had to bear the burden of weaker housing data and pessimism surrounding the US-China trade tussle, as cited by the Federal Reserve’s Beige Book.
Although greenback weakness should ideally help the Antipodeans, the Australian Dollar (AUD) couldn’t rise much amid the overall risk-averse market sentiment as trade woes and sluggish equity market performance dragged the Aussie backward.
The global measure of risk sentiment, the US 10-year treasury yield, lost nearly 8 basis points (bps) on Wednesday while making the rounds to 2.043%.
Investors will now watch over the June month employment data in order to forecast near-term Aussie momentum. The jobs report gains major attention amid the Reserve Bank of Australia’s (RBA) recently the higher emphasis on the employment figures.
The forecast suggests the seasonally adjusted employment change to flash 10.0K mark versus post-election jump of 42.3K. However, no change is expected in the 5.2% Unemployment Rate.
Technical Analysis
A successful break of 100-day exponential moving average (EMA) level of 0.7017 becomes necessary for buyers to target 0.7045/50 resistance-area comprising May and current month high. If failed, July 10 high around 0.6985/80, also comprising 21 and 50 EMAs, seem crucial to watch.
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