The Aussie Dollar remains close to YTD highs despite downbeat Australian Trade Balance data.
A weak US ADP employment report hurt the US Dollar on Wednesday as investors ramped up bets for Fed cuts.
The Nonfarm Payrolls reading might boost US Dollar volatility later today..
The Australian Dollar remains consolidating gains near the year-to-date highs at 0.6590. The negative impact from a lower-than-expected Australian trade Surplus in May has been contained above 0.6560 on Thursday, and the pair has retraced previous losses as the US Dollar drifts lower ahead of the US Nonfarm Payroll report.
Investors are wary of placing large US Dollar bets ahead of June’s Payrolls release, and more so after the disappointing ADP employment reading seen on Wednesday. The ADP report revealed a 33,000 net loss in private employment in June, against expectations of a 95,000 increase.
The market is now awaiting the NFP report for a more accurate assessment of the labour market’s health, and also on the Federal Reserve’s monetary policy plans. Today’s payrolls are likely to boost the US Dollar’s volatility.
Technical Analysis: Potential Double Top at 0.6590
Technical indicators remain positive, with the trend of higher highs and higher lows intact and the intraday RSI steady above 50. Price action, however, suggests a potential Double top at 0.6590 that might be anticipating a deeper correction.
The pair should breach the June 2 low, at 0.6546, to confirm the DT pattern. The figure’s measured target is the 38.2% Fibonacci retracement of the June 23-July 1 rally, at 0.6510.
On the upside, above the mentioned July 1 and 2 high, at 0.6590, the trendline resistance from May 24 lows, now around 0.6645, is a plausible target for bulls.
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
