AUD/USD advance after jobs data held back by key technicals for now

The upside push in the aussie came after the hot jobs report earlier in the day here. With inflation still holding up, it’s not making it easier to buy into the RBA rate cut story as the economy isn’t exactly falling apart. This rebuffs expectations for the RBA to hold the cash rate unchanged in November, with traders now seeing ~91% odds of that.

AUD/USD got a decent nudge up to 0.6710 but is now down to 0.6690 and keeping just below its 100-day moving average (red line) of 0.6693. That’s the key line in the sand to watch on the daily chart. Hold below that and sellers will stay incentivised to search for further downside towards the end of the week.

Looking at near-term levels, there’s also the 100-hour moving average at 0.6712 and that might limit any intraday moves as well. So, do keen an eye out for that.

Buyers will need to do some work in order to break through those levels and convince of a turnaround after yesterday’s fall.

This article was written by Justin Low at www.forexlive.com.