Forex: AUD/USD leaking lower as Aus employment data approaches

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Forex: AUD/USD leaking lower as Aus employment data approaches

FITITOL--> FXstreet.com (Barcelona) - Investors continue to wade into a stronger US Dollar, which was able to muscle into new 2012 highs vs the Aussie ahead of Australia's jobs report, due at 1.30GMT. The AUD/USD traded as cheap as 1.0020 before staging a minor bounce to 1.0050ish, current price. On the day, the rate is down 0.68%.

Whether or not the RBA will carry its easing into the second-half of the year, it comes down to assess the fundamental outlook in the Australian economy. Despite the Central Bank has emphasized lower prices may give them further room to maneuver on rates - PM Guillard touched on this subject yesterday -, the jobs figures is also important to decide on rate calls. Market participants still see an additional 50 to 100bp cuts over the next 12-months.

According to Michael Boutros, Currency Strategist and David Song, Currency Analyst at DailyFX : "The AUDUSD is trading within the confines of a descending channel formation dating back to the February 29th. The aussie is at critical levels with a break below parity risking accelerated losses for the high yielder. Daily resistance now stands at the 78.6% Fibonacci retracement taken from the December advance and is backed by the January low at 1.0140."

While the pair found technical cushion at 1.0020, which is backed by the 61.8% Fib extension taken from the April 27th and May 7th at 1.0006, immediate resistance lies at 1.0050, the 50% extension. A break above would give buyers some room to target higher bands between 1.0090 and 1.0110, the 38.2% extension, although bounces are expected short-lived as risk takers dry out.

DailyFX Analysts added: "Should the print prompt a bearish response look to target downside levels with a break below channel support offering further conviction on our directional bias. Such a scenario eyes downside targets at 9980, the 7 8.6% extension at 9950 and 9920."