- Upbeat Aussie full-time jobs growth data helped regain traction on Thursday.
- The USD weighed down by sliding US bond yields and remained supportive.
- US-China trade tensions might keep a lid on any strong follow-through up-move
The AUD/USD pair built on strong intraday positive momentum and is currently placed near the top end of its weekly trading range, around the 0.7040 region.
Having shown some resilience below the key 0.70 psychological mark in the previous session, the pair caught some fresh bids on Thursday in reaction to the latest Aussie jobs report that pointed to a strong pickup in the full-time jobs growth in June.
The economy added 21.1K full-time jobs last month – much higher than the previous month’s dismal reading of 2.4K, and helped offset weaker-than-expected headline print, showing that the total number of employed people rose by only 0.5K during the reported month.
Thursday’s jobs report was seen easing pressure on the RBA to cut interest rates immediately, which coupled with the prevalent US Dollar selling bias, provided a strong boost and lifted the pair back closer to the 0.7045-50 supply zone.
With investors looking past Tuesday’s upbeat US monthly retail sales data, the ongoing sharp slide in the US Treasury bond yields exerted some downward pressure on the greenback and remained supportive, albeit US-China trade tensions might cap any meaningful up-move.
Hence, it would be prudent to wait for a strong follow-through buying before positioning for any further near-term appreciating move as market participants now look forward to the second-tier US economic releases for some impetus later during the early North-American session.
Technical levels to watch
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