- US-China trade resolution-led risk-on boosts the risk currency, the AUD.
- Bulls await the US payrolls and wages data for the next move higher.
The AUD/USD pair is seen consolidating the Asian spike to monthly tops at 0.7250, as markets look forward to the all-important US wage growth data for fresh trading impetus.
All eyes on US payrolls, wages
The bulls look poised to chew the offers near the mid-point of the 0.72 handle, as the Aussie is helped by the risk-on trades across the global financial markets, triggered by the latest optimism on the US-China trade deal, as the US President Trump seeks to draft a possible trade deal with China following the positive telephonic conversation with President Xi overnight.
Moreover, the spot remains underpinned by a broadly weaker US dollar, as the greenback continues to sag amid reduced demand for safe-havens, with the US-China trade truce now looking inevitable. Attention now turns towards the highly influential US monthly jobs report, which is likely to show an increase in both the average earnings and payrolls data for the month of October.
Nonfarm Payrolls preview: wages’ growth vs. job’s creation, which one will weigh more?
Technical levels to watch
Immediate resistance is seen near the 0.7269 (Sept 27 high), above which the pair is likely to test the 0.73 handle. To the downside, the key 0.7200 level is seen an immediate support, below which the bears will target the 0.7166 (daily pivot) and 0.7138 (5-DMA).
Share
