Aussie jobs preview - what to expect in AUD/USD?

Currently, AUD/USD is trading at 0.7494, up 0.33% on the day, having posted a daily high at 0.7500 and low at 0.7469.

AUD/USD has been consolidating for the best part of the recent post-Trump v-ctory sessions bottoming at 0.7459 and sideways between there and 0.7496. The markets has been in a bullish trend this year with the RBA, despite the RBA cutting interest rates to record levels previously in the year.

The yeild advantage has favoured the Aussie in a reasonably robust economic environment and a confidence in the Central Bank that inflation will move into target along with growth. The last RBA minutes reiterated this sentiment around risks around inflation forecasts that are broadly balanced and acknowledging the improving trade conditions, but still sees uncertainty about outlook due to China.

Market expections in the Aussie jobs data and previous

The jobs market is also an uncertainty as we move into this week's employment data for October and markets will be concerned should there remain a large part of the employment as part-time jobs with full-time employment falling by -53.0 K for the previous month.

The report will be released at 0030 GMT and the market expectations are for an employment change to increase by  15K against the massive decline of -9.8 K for the previous month. The unemployment rate is expected to move higher to 5.7% from 5.6%. The participation rate  is also expected to move higher slightly from 64.5% to 64.6%.

AUD/USD levels and technicals to monitor

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, technical indicators have pared losses, but the RSI remains around 32 and the Momentum well below its 100 level, while the 20 SMA has fallen further above the current level, all of which maintains the risk towards the downside. "The pair has  a major support at 0.7450, the 38.2% retracement of this year early rally, with a break below it opening doors for a  steady decline down to the 0.7200/50 price zone."

Meanwhile, current price is 0.7495, with resistance ahead at 0.7497 (Hourly 20 EMA), 0.7500 (Daily High), 0.7511 (Daily 200 SMA), 0.7520 (Daily Classic S1) and 0.7552 (Daily Classic PP). Next support to the downside can be found at 0.7481 (Daily Classic S2), 0.7470 (Monthly Low), 0.7470 (Weekly Low), 0.7470 (Daily Open) and 0.7469 (Daily Low).