AUD/USD Trims Losses, Approaches 0.7350

AUD/USD Trims Losses, Approaches 0.7350

6 June 2016, 10:04
Roberto Jacobs
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AUD/USD Trims Losses, Approaches 0.7350

The Aussie dollar has managed to bounce off session lows vs. the dollar, with AUD/USD now hovering over the mid-0.7300s.

AUD/USD capped around 0.7370

The pair has partially faded Friday’s strong advance to the area of 0.7370 following lower- than-expected US Non-farm Payrolls, dropping to the 0.7320/10 band during overnight trade in response to a pick up in the demand for the greenback.

Data wise in Oz, the Inflation Gauge by the Melbourne Institute has dropped 0.2% MoM in May, adding some initial downside pressure to AUD ahead of the RBA meeting due tomorrow. Prior surveys expect the central bank to keep its monetary stance unchanged, with the benchmark rate steady at 1.75%.

In the US calendar, the Fed’s Labor Market Conditions Index is due ahead of the key speech by Chair J.Yellen.

AUD/USD levels to watch

At the moment the pair is losing 0.19% at 0.7354 and a break below 0.7260 (200-day sma) would aim for 0.7142 (low May 24) and then 0.7063 (23.6% Fibo of the Jan-Apr up move). On the other hand, the initial hurdle aligns at 0.7372 (post-NFP high Jun.3) followed by 0.7403 (high May 11) and finally 0.7479 (55-day sma).

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