The Aussie surged higher yesterday as the greenback took a beating after worse than expected CPI data in the US. It is now sitting just below key resistance at 0.6700 and a strong result in today’s employment data could see the pair break higher into a fresh topside range. The April employment data is expected to show a gain of 25k new jobs and for the unemployment rate to rise by another 0.1% to 3.9% and anything significantly away from these expectations should see fresh moves in the market.
Support on the hourly chart now sits back just above the 66-cent level where the 200-day moving average, trendline support and large options interest should all combine to limit any downside moves, however that level is now pretty far off after last nights moves and traders are expecting dips to provide buying opportunities in the current US dollar negative environment.
Resistance 2 : 0.6873 – December 2023 High
Resistance 1 : 0.6705 – Long-term Trendline Resistance
Support 1 : 0.6610 – 200-day Moving Average and Trendline Support
Support 2 : 0.6555 – May 8 Low
