- Upbeat US employment data pleased US Dollar (USD) buyers.
- 21-day EMA continues to restrict Aussie declines.
- ANZ Job Advertisements can offer fresh direction together with US-China trade clues.
With the Friday’s US Nonfarm Payrolls (NFP) still pleasing the USD buyers, the AUD/USD pair seesaws near multi-day low while taking the rounds to 0.6980 during the early Asian trading on Monday.
The Aussie pair thumped on the NFP-day after the headline US employment data came in better than expected, turning previous greenback bears into the bulls. Reflecting the market sentiment was the US 10-year treasury yields that rose nearly 8 basis points to 2.04%.
However, the quote still remains above 21-day EMA that it crossed sometime during late-June, indicating the pair buyers’ worries on the back of global market weakness and the US-China trade uncertainty.
Recently, China’s SCMP raised doubts on the latest positive news from the G20 where the US and Chinese President’s agreed to restart previously stalled trade talks. The daily mentioned that Trump and Xi are no closer to a deal, even if they are ‘friends’.
Elsewhere, the US President Donald Trump kept exerting the pressure on the US Federal Reserve to cut the benchmark Fed rate.
For now, June month ANZ Job Advertisement (prior -8.4%) is the only data up on the economic calendar to watch. Though, news headlines concerning the US-China trade story and/or affecting global market risk sentiment can have its own impact.
Technical Analysis
A 21-day exponential moving average (EMA) at 0.6971 becomes the key support to follow, a sustained downside break of which can recall 0.6940 and 0.6910 numbers on the chart. On the contrary, 0.7000 and 100-day EMA level of 0.7020 seem nearby resistances to watch during the pair’s recovery.
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