A solid Australian employment reading has seen AUD outperform most of its peers, and economists at TD Securities maintain a constructive near-term view on the aussie.
The AUD has enjoyed a notable reversal of fortunes
“Investors opted to fade the strong headlines in Australia’s March employment reading amid a quibble with the full-time/part-time split. From our perspective, we are not particularly concerned by the FT/PT split. We’ll need to see what happens with the JobKeeper unwind, but we would not be surprised to see some portion of those PT hires converted into FT roles in the months ahead.”
“This week’s clear push above resistance at 0.7677 in AUD/USD opens the door to some further upside, we think. We see 0.7750 as the next minor target to the upside ahead of the mid-March highs at 0.7849.”
“The technical backdrop is fairly congested at current levels and the pair may have a lot of wood to chop to advance above the late-February high above 0.80.”
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