Aussie/USD had a hard time moving above the round 0.73 level. It had capped the pair on an initial recovery attempt and also good news from Australia such as the robust GDP report only sent it to this resistance line but no further.
The Aussie hesitated also after the poor NFP report. The US economy gained only 38K jobs in May, a figure that is the worst read since September 2010 and in many cases smaller than some job gains in Australia, a country that has less than the tenth of the population.
But eventually, and thanks to another poor report from the ISM Non-Manufacturing PMI, AUD/USD pushed higher.
The breakout sends the pair to the 0.73 to 0.7375 range. Above 0.7375 we find 0.7440 as a stepping stone to 0.75, a very round level.
Higher above, 0.76 and 0.7740 are further lines of resistance after capping the pair back in April. The ultimate cap is 0.7840, which was the cycle high.
On the downside we find 0.73 which now switches to support, followed by 0.7175 and 0.7140.
The RBA will have a hard time in its decision next week: on one hand, the positive GDP should keep it on hold or even hawkish. On the other hand, the strong exchange rate is something Stevens and co. certainly dislike.
Here is the A$/USD chart:
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