AUD/USD: Bias remains to buy dips – OCBC

Australian Dollar (AUD) extended its move higher, in a steady manner. Pair was last at 0.6536 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Fed cut continues to underpin a conducive environment for AUD bulls

"Upside surprise to the labour market report was the latest catalyst while a softer USD, and expectations for Fed cut continue to underpin a conducive environment for AUD bulls."

"Full time employment printed 60.5k (vs. 38.2k prior) while headline of 24.5k was largely in line with expectations. We reiterate that 'cautious and gradual' pace of rate cut remains the policy stance for RBA and that RBA is cutting rate from a position of stability not distress. "

Bias remains to buy dips, not chase rally. Daily momentum turned mild bullish while RSI rose. Resistance here at 0.6560, 0.66 levels. Support at 0.65, 0.6430 levels.