AUD/USD holding near highs ahead of Aussie employment figures

• The Aussie saw a late session bounce yesterday as the market abandoned the Greenback.
• Risk-on traders will be looking to keep the recovery on-track with the Australian jobs report on the way.

The AUD/USD is trading just beneath the 0.7400 level after dipping into a low of 0.7340 in Wednesday’s action, before recovering steeply.

Broader markets lost their flavour for the US Dollar heading into the last session of yesterday’s trading, and Aussie traders will be looking for the Australian jobs report due early for Wednesday at 01:30 GMT.

June’s Employment Change is expected to improve from 12 thousand to 17 thousand jobs added, while the Participation Rate is expected to remain steady at 65.5%, with the Unemployment Rate also seen remaining at 5.4%. Part-Time Employment in May last improved by 32.6 thousand, but Full-Time Employment decreased in the last period by 20.6 thousand jobs.

Ahead of the employment report will also be the National Australia Bank Business Confidence indicator for 2018’s second quarter at 00:30 GMT, which last came in at a release of 7 and could set up the mood for the impending jobs release.

AUD/USD Levels to watch

Bullish momentum remains incredibly limited despite yesterday’s late rally, and as FXStreet’s own Valeria Bednarik noted, “despite the latest recovery, the 4 hours chart shows that the upward potential remains limited as the pair is struggling with directionless 20 and 100 SMA both confined to a tight range, while technical indicators bounce from their daily lows, with the Momentum still in negative territory but the RSI aiming to surpass its mid-line.”

Support levels: 0.7370 0.7335 0.7310  

Resistance levels: 0.7410 0.7450 0.7490