Aussie jobs preview - what to expect in AUD/USD?

AUD/USD has been working on the bid with the overnight markets selling out of the US dollar due to the slightly dovish tone from the FOMC minutes and for today, there will be domestic data for Australia in the employment report.

AUD/USD rallied from 0.7608 and reached a high of 0.7672 on the outcome of the minutes, falling back just below the mid-point of the handle before drifting to the upside again, just shy of the highs in early Asia. 

FOMC minutes: hawks balanced with doves - Socgen

Australian employment report's expectations?

We now await the employment report from Australia to gauge whether there are any early signs of the RBA's easing bias working its way through into the job's sector of the economy yet.  "The survey for July is expected to show an acceleration in jobs growth following a soft patch," explained analysts at Westpac, "Higher participation is expected to keep unemployment steady at 5.8%." However, analysts at ANZ said that they expect the labour market to soften. "A weak print should see some of the recent strength in the currency unwind and retest support around USD0.76."

What levels to monitor in AUD/USD?

Spot is presently trading at 0.7665, and next resistance can be seen at 0.7669 (Weekly Classic PP), 0.7670 (Daily High), 0.7673 (Hourly 200 SMA), 0.7677 (Hourly 100 SMA) and 0.7700 (Daily Classic PP). Support below can be found at 0.7656 (Daily Open), 0.7651 (Hourly 20 EMA), 0.7650 (Weekly Low), 0.7650 (Daily Low) and 0.7649 (Daily Classic S1). AUD/USD has resistance in the wide at 0.7753/.7850 zone. "This is the location of the recent high, the 38.2% retracement (of the move down from June 2014), and the 2013-2016 resistance line and again we look for the market to struggle and fail here," explained analysts at Commerzbank who mark a break below the 0.7596 (20 day ma) should see attention revert to 55 day ma at .7514 and the 200 day ma at 0.7361. "The 2016 support line lies 0.7346."