AUD/USD bounces-back above 0.7750, focus shifts to Aus jobs

• Fresh USD buying negates risk-on in equities.
• Expect range bound trading ahead of the Australian jobs report.

Having consolidated around 0.7770 levels almost throughout the Asian session this Thursday, the AUD/USD pair came under fresh selling pressure in the European session and hit a daily low at 0.7744 before attempting a tepid bounce just ahead of the midpoint of the 0.77 handle.

The 30-pips tumble seen in the Aussie in early trades was mainly driven by resurgent USD demand across the board, as rising Treasury yields amid upbeat US fundamentals and risk-on lifted the sentiment around the buck.

Also, the bulls turn cautious ahead of the key Australian employment data due tomorrow at 0130 GMT, despite another solid month of solid growth expected in the labor market. In the meantime, the USD dynamics and broader market sentiment will continue to have a major bearing on the spot.

AUD/USD levels to watch

According to Jim Langlands at FX Charts, “if the positive look from the dailies prevails, then we could be in for another run to 0.7790 and back to 0.7800/10, above which could see a run towards 0.7850 and then to 0.7900. If we head back below 0.7760, bids would arrive at 0.7750/45, with further support seen at 0.7735 and 0.7720, below which could revisit 0.7705/95 (10 April low – 0.7693) although this currently seems unlikely.”