AUD/USD clinches highs near 0.7430, Aus jobs underpin

A better-than expected Australian Nov jobs report provided extra legs to the post-FOMC recovery in the AUD/USD pair, now keeping the rate within a striking distance of fresh daily highs of 0.7431.

AUD/USD: Looks to regain 20-DMA at 0.7447

Currently, the AUD/USD pair trades +0.20% at 0.7422, having staged a solid pullback from two-week lows of 0.7384. The Aussie traders cheered stronger Australian labor market report and thereby, rescued the AUD bulls from a slump to fresh two-week lows, reached in response to the Asian traders’ reaction the hawkish FOMC statement published overnight.

However, further upside appears capped as the US dollar continues to remain strongly bid versus its major peers on 102 handle, benefiting from divergent monetary policy outlooks between Fed and RBA. The recent poor Aussie GDP and capex figures signaled further RBA rate cuts next year, while the Fed is on track for faster pace of tightening in 2017, as reflected by yesterday’s FOMC dots chart.

Later today, markets will turn their attention towards the US CPI, Philly Fed manufacturing gauge and jobless claims data, which will provide fresh incentives to the pair.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7447/55 (20 & 5-DMA) above which gains could be extended to the next hurdle located 0.7492 (daily R1) and 0.7529 (50-DMA). On the flip side, the immediate support located 0.7384 (2-week low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7354 (daily S1) and below that at 0.7300 (zero figure).