“¢ Early uptick led by positive US-China trade-related news turns out to be short-lived.
“¢ RBA rate-cut speculations continue to weigh on the Aussie and capping strong up-move.
“¢ Investors start repositioning for Friday’s closely watched US monthly jobs report.
The AUD/USD pair failed to capitalize on its intraday positive move and might now be headed back towards challenging the key 0.70 psychological mark.
With investors looking past not so dovish FOMC statement, a subdued US Dollar price action helped the pair to regain some positive traction during the Asian session on Thursday and the uptick was further supported by positive news flow on the US-China trade negotiations.
Reports suggested that the world’s two largest economies may announce a trade deal by next Friday and provided an additional boost to the China-proxy Australian Dollar, though the uptick lacked any strong follow-through amid expectations that the RBA will cut interest rates in May.
Meanwhile, the latest disappointment from second-tier US economic data, showing that the initial weekly jobless claims held steady at 230K as compared to a drop to 215K expected and a sharp drop in unit labour cost, did little to impress the bulls or provide any meaningful impetus.
It would now be interesting to see if the pair is able to defend the mentioned handle or the current pullback marks the resumption of the prior well-established bearish trend as market participants start repositioning for Friday’s closely watched US monthly jobs report – popularly known as NFP.
Technical levels to watch
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