AUD/USD eases off session highs ahead of jobs data

During the first half of the week, the AUD/USD pair failed to rise above the 0.75 handle until President Trump's comments in the late NA session triggered a heavy USD sell-off. The pair leaped to a new three-day high at 0.7540 before easing back to 0.7530, where the pair is still up 0.08% on the day.

Now that the dust has settled after Trump's comments, the investors' focus shift to the Aussie jobs report for March. The US Dollar Index is holding above 100 in a tight channel waiting for the Asian traders to hit their desks.

• US Dollar approaches 100 on dovish Trump

National Australia Bank in a recent report argued that the employment/unemployment on Thursday will take a greater than usual importance because the RBA Governor recently said that they would need to see an improvement in the labor market before they can be confident that economic growth is strengthening. NAB also added that they expect the unemployment rate to decline to 5.8% with an employment growth of +20K.

• Australia: Modest growth in store – NAB

Technical outlook

A disappointing jobs report could trigger an AUD sell-off, pushing the pair lower back to 0.75 (psychological level), 0.7470 (daily low) and finally 0.7400 (psychological level). To the upside, the immediate resistance is located at 0.7540 (100-DMA) followed by 0.7550 (200-DMA) and 0.7600 (psychological level).