AUD/USD climbed on Thursday after a soft US jobs report weakened the Dollar, but the pair stayed pinned below 0.7000 inside a one-week range. Technical signals still lean bearish, and any rebounds are likely to stay shallow while the pair trades under that level.
The Australian Dollar gained on the US Dollar on Thursday after a weaker-than-expected US Nonfarm Payrolls report pushed back expectations of an imminent Federal Reserve interest rate hike. Yet AUD/USD held inside a one-week range near 0.6918, after touching an intraday high of 0.6943, its highest since June 23.
Weak payrolls knock the Dollar
The US economy added just 57K jobs in June, the Bureau of Labor Statistics reported, well below the 110K the market expected. On top of that, May's payrolls were revised down to 129K from the previously reported 172K.
The soft print pushed back expectations of a near-term Fed move, giving the Australian Dollar room to advance.
Technicals keep the bias bearish
The pair is trying to build support above the 200-day Simple Moving Average at 0.6865. Still, the near-term picture stays bearish, with AUD/USD posting lower highs and lower lows since peaking at 0.7277 in early May while holding below the 100-day SMA at 0.7074.
On the topside, resistance sits at the psychological 0.7000 level, and a break above it could open the way to a test of the 100-day SMA at 0.7074. Only a sustained move above that zone would ease the bearish pressure.
The Relative Strength Index has recovered to around 37 after slipping into oversold territory, while the MACD stays below the zero line. With few signs of a trend reversal, any rebounds are likely to stay shallow while the pair holds under 0.7000.
Source: FXStreet
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