- The rally in AUD/USD met resistance near 0.6450 on Wednesday.
- Key labour market report is due in Australia on Thursday.
- US Retail Sales, Fed’s Beige Book coming up later in the NA session.
The rally in AUD/USD appears to have met strong resistance in the 0.6450 region on Wednesday, levels close to the 55-day SMA.
AUD/USD looks to jobs report
After seven consecutive daily advances, AUD/USD sharp recovery seems to be taking a breather on Wednesday on the back of some renewed buying interest surrounding the greenback.
The better sentiment around AUD has been intensifying as of late in response to news that China has managed to resume its economic activity following the COVID-19 lockdowns. However, the recent upside in the pair is expected to be put to the test in light of the looser monetary policy stance from the RBA, weaker prices in the commodity universe and prospects of global recession.
Later in the week, the Aussie dollar will be under the microscope in light of the publication of the always-critical jobs report (Thursday) and Retail Sales (Friday). The employment report will be closely scrutinized as it remains a pillar of the RBA’s monetary policy and is a key factor as well to gauge the initial impact of the COVID-19 on the economy.
AUD/USD levels to watch
At the moment the pair is losing 1.84% at 0.6323 and faces the next support at 0.6303 (weekly low Apr.15) seconded by 0.5980 (monthly low Apr.3) and then 0.5506 (2020 low Mar.19). On the upside, a breakout of 0.6444 (monthly high Apr.14) would aim for 0.6609 (100-day SMA) and finally 0.6684 (monthly high Mar.9).
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