- Upbeat Aussie employment details provided a goodish lift.
- The prevalent USD selling bias provided an additional boost.
The AUD/USD pair built on its goodish intraday positive move and jumped to four-week tops, around the 0.6830 region in the last hour.
The pair added to the overnight late bounce from weekly lows and gained some strong follow-through traction during the Asian session on Thursday in reaction to an unexpected fall in the Australian unemployment rate.
Combination of factors remain supportive
This coupled with the prevalent US Dollar selling bias, amid expectations that the Fed will cut interest rates again in October, provided an additional boost and remained supportive of the ongoing positive momentum.
Moreover, the incoming positive trade-related headlines, wherein China’s Commerce Ministry spokesman said that we are discussing “Phase 2” of a deal with the US further underpinned the China-proxy Aussie.
Meanwhile, the latest leg of a sudden upsurge over the past hour or so could further be attributed to some near-term short-covering move on a sustained strength above the 0.6800 round-figure mark.
It will now be interesting to see if the positive move marks a near-term bullish breakout or is solely led by stop-run, which runs the risk of fizzling out rather quickly amid absent top-tier US economic data.
Later during the early North-American session, the release of Philly Fed Manufacturing Index, housing market data and industrial production figures from the US might provide some short-term trading impetus.
Technical levels to watch
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