AUD/USD turns south from 0.7190, negative S&P 500 futures weigh

• AUD bulls struggle to extend the upside amid negative S&P 500 futures.
• US dollar weakness amid fiscal impasse continues to offer support.
• Strong Australian jobs report defy Victorian virus concerns.

AUD/USD is consolidating the Asian uptick to a two-day high of 0.7188 in early Europe. The bulls, however, appear to lack follow-through amid a cautious market mood.

The spot gains 0.11% to trade at 0.7168, at the time of writing, maintaining its recovery mode from Wednesday’s drop to 0.7110 troughs.

The sentiment around the aussie remains underpinned by upbeat Australian jobs data, with the economy witnessing jobs addition despite the lockdowns re-imposed in Victoria amid the coronavirus resurgence.

Moreover, broad-based US dollar weakness, induced by falling Treasury yields amid large auction and fiscal stimulus impasse, continues to benefit AUD/USD. Also, a lack of negative news on the US-China front helps keep the buoyant tone intact around the Chinese proxy, the AUD.

However, the bulls seem to struggle to take on the upside, as the market mood has somewhat turned cautious, despite the vaccine hopes, reflective of the pullback in the S&P 500 futures. S&P 500 futures drop 0.20% to trade around 3,360.

Attention now turns towards the US weekly Jobless Claims data for fresh trading impetus. In the meantime, the US dollar price action and sentiment on the European equities will influence the pair.

AUD/USD technical levels

The immediate upside will be tested at 0.7200 (round figure). The next resistance is aligned at 0.7244 (Aug 7 high). On the flip side, the immediate support is seen at 0.7150 (psychological level), below which the 20-DMA at 0.7140 could be tested.

AUD/USD additional levels