The Australian dollar changed course and made a move to the upside, enjoying the great jobs report. Will it continue higher? The RBA meeting minutes stand out. Here are the highlights of the week and an updated technical analysis for AUD/USD.
Australia reported a gain of no less than 61.6K jobs in November, far better than expected and with an upwards revision. Chinese industrial output was OK and the USD wobbled on positive retail sales and the upcoming tax bill while suffering from a second dissenter amid the Fed’s ranks and subdued inflation.
AUD/USD daily graph with support and resistance lines on it. Click to enlarge:
AUD/SD Technical Analysis
The Aussie flirted with the lows of 0.75, mentioned last week, before changing course and rising towards 0.77.
Technical lines from top to bottom:
The psychological round level of 0.80. Below, we find 0.7940, which capped the pair in August.
0.7860 served as support during September and is another line to watch. 0.7785 was a stepping stone on the way up.
Below, we find 0.7730, that was a high point in June 2017 and also beforehand, working as resistance in November. The round number of 0.77 capped the pair in mid-December. 0.7640 worked as resistance in November.
0.7595 was a swing high in early December and capped the pair. 07550 provided support in late November.
0.7530 is the cycle low, very close to the previous line and the last stop before the round number of 0.75.
Even lower, we find 0.7440 and then 0.7375.
I am neutral on AUD/USD
The Australian dollar got a significant boost from the jobs report and could stabilize at current levels. Weak inflation may limit its gains.
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