The Australian dollar surged in early Thursday’s trading, advancing 0.7% in Asia, boosted by upbeat Australian jobs data which showed strong rise in employment in Oct (32.8K vs 19.9K f/c and 7.8K prev) while unemployment remained unchanged at 5%. Weaker US dollar and higher metal’s prices added to bullish sentiment.
Fresh rally emerged above falling thick daily cloud and looks for retest of last week’s highs at 0.7302, where recovery stalled. Strong resistances lay at 0.73 zone (0.7306 – Fibo 61.8% of 0.7483/0.7019 and 0.7314 – 26 Sep high) break of which would spark further recovery and generate stronger reversal signal.
Daily studies maintain strong bullish momentum, with multiple bull-crosses of daily MA’s underpinning the advance.
Strong supports at 0.7256/47 (broken 100SMA/broken daily cloud top) are expected to hold and keep bulls in play.
Focus turns towards upcoming meeting of US president Trump and China’s President Xi, outcome of which is expected to generate significant direction signals.
If two leaders make progress in talks regarding persisting trade tensions and sideline persisting concerns about the escalation of trade war, the Aussie may rally stronger and signal reversal of larger downtrend.
Res: 0.7302, 0.7314, 0.7374, 0.7447
Sup: 0.7247, 0.7228, 0.7188, 0.7164
