The Australian Dollar steadied after two straight days of losses trading at 0.6480 in early Asian trade, close to its New York finish at 0.6486. The pressure is still on the downside following this morning’s report of a rise in two new Covid-19 cases in New Zealand, breaking its record of 24 days of none. Asian geopolitics will also be monitored by FX in the region, including the Aussie Dollar. Any upticks on either of these events will see the Aussie Battler pressured lower.
Aussie traders now have their focus on Australia’s Employment report for May. Market expectations are for a fall in Full-Time Employment of between -105,000-125,000 jobs from the April’s fall of-594,300 jobs. The Jobless rate is forecast to increase to between 6.9-7.0%. Markets will also look at the breakdown between full-time and part-time employment as well as the change in the participation rate. There is a rather wide range of forecasts in the numbers and anything better or worse than the above forecasts will see the Aussie Dollar move.
AUD/USD has immediate support at 0.6850 followed by 0.6820 and 0.6770. Immediate resistance can be found at 0.6920, 0.6960 and 0.7000 cents. Look for consolidation ahead of the Aussie Jobs report today with a likely range between 0.6830 and 0.6930. Prefer to sell rallies and trade from the short side.