AUD/USD: Upside Capped by 0.7680/85, US Jobs Eyed

AUD/USD: Upside Capped by 0.7680/85, US Jobs Eyed

1 April 2016, 13:02
Roberto Jacobs

AUD/USD: Upside Capped by 0.7680/85, US Jobs Eyed

The AUD/USD pair is extending its phase of consolidation in the mid-European session, with the bulls taking a breather heading closer towards the crucial US labour market data.

AUD/USD trades below daily pivot at 0.7676

Currently, the AUD/USD pair trades 0.14% higher at 0.7668, unable to advance through 0.7680/85 band post-European open. The Aussie faces offers on every attempt towards 0.77 handle as the steep losses seen in the oil and European stock markets continue to weigh on the sentiment around the higher-yielding currencies such as the AUD.

However, the bulls find some support from a broadly lower US dollar as also from the auspicious Chinese PMIs readings. Looking ahead, all eyes remain on the US employment report due ahead of the US open, while next week’s RBA policy decision is also eagerly awaited for further momentum on the pair.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7700/07 (round number/ Mar 30 High) above which gains could be extended to the next hurdle located at 0.7723/41 (Mar 31 High/ July 2015 High). On the flip side, the immediate support located at 0.7634/29 (5-DMA/ daily S1/). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7581/70 (1h 200-SMA/ 20-DMA).

(Market News Provided by FXstreet)

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