AUD/USD: consolidates around 0.7500 ahead of key US jobs data

Currently, AUD/USD is trading at 0.7503, down -0.07% on the day, having posted a daily high at 0.7513 and low at 0.7500.

AUD/USD is consolidated within a 20 pip range, much like its antipodean partner, the NZD/USD. AUD/USD is stuck around the 0.75 handle while the market awaits the nonfarm payrolls report today. The ADP report offered a very healthy outlook for tomorrow's report, but indeed the proof will be in the pudding. The pudding, in this case, is the background to the headline. 

A headline of over 200k is expected, but what markets will also need to consider are the number of people returning to the labour market, wages and the unemployment rate. A downside revision could also be a reason to think twice about next week's Fed decision and the market pricing in a hike 100% according to the latest futures market. 

Just a reason or two to short the 'March rate hike herd'

The DXY finished the US session on the back-foot today and offered Aussie bulls a respite from the bear's onslaught. The ECB's less dovish presser that drove demand into the euro. 

AUD/USD 1-3 month: 

Analysts at Westpac are looking for AUS/USD to head lower to 0.7400. "The Fed’s assertive tightening bias plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar. Against that coal and iron ore are likely to sustain a good portion of their dramatic rises, and economic data for Q4 and Q1 should improve, but these forces are subservient to the US dollar’s trend. Australia’s AAA rating will remain an issue into the May budget. (23 Dec)"

AUD/USD levels

AUD/USD MACD opens the gates for further depreciation

AUD/USD, from a technical point of view, Valeria Bednarik, chief analyst at FXStreet explained that the pair retains the negative tone triggered by the bearish breakout of the 0.7600 level last week, and is poised to extend its decline particularly on a break below the mentioned daily low. 

AUD/USD 4hr chart signals consolidation 

For the 4 hours chart, she said,"The 20 SMA heads lower far above the current level, indicating the strength of the downward move, whilst technical indicators have barely bounced within over-sold territory, not enough to confirm an upward corrective movement. Above 0.7530, however, the recovery can extend, but selling interest will likely surge on an approach to the 0.7600 region."