AUD/USD: risks of decline limited?

Currently, AUD/USD is trading at 0.7542, up 0.02% on the day, having posted a daily high at 0.7548 and low at 0.7538.

AUD/USD is sidelined and consolidated in slow trade while traders await the next catalyst from the calendar. The day will bring NAB business confidence. The week ahead brings the• Australian jobs data is also due this week (Thursday). "It is likely to return toward earth from its recent stellar performance, creating 60k jobs in March and 37.4k positions in April. Last year's average was a little less than 9k a month. The 2015 and 2016 average was almost 17k," explained analysts at Brown Brothers Harriman.  

The US dollar Week ahead is a big one - Westpac

Australia also reports June inflation expectations. "It has been between 4.0% and 4.3% since the start of the year. Even though in May was at the lower end of the range, we see downside risks. It finished last year at 3.4%," added the analysts. 

Besides the domestic economy, eyes will be on the Chinese authorities’ eagerness to counter the negative headlines over Moody’s sovereign downgrade and In addition, explained analysts at Westpac, the strength of steel reinforcing bar (rebar) prices suggests iron ore should eventually play catch-up. 

AUD/NZD: eyes on break of 1.0388 / 1.0515 range

AUD/USD levels

Valeria Bednarik, chief analysts at FXStreet explained that in the 4 hours chart, the Momentum indicator hovers around its 100 level, and the RSI indicator heads modestly lower around 54. "A downward acceleration below the 0.7500 thresholds should favour a decline towards the 0.7400 regions, but even then, the risk of a continued decline will remain limited."