FxWirePro: AUD/USD edges higher as greenback softens ahead of U.S. jobs data

•  AUD/USD edged higher on Monday as weakness in the greenback outweighed soft Australian economic data.

• The greenback dipped as investors awaited a series of U.S. labor market reports this week that may shape the scale of the Federal Reserve’s anticipated rate cut later this month..

• Data showed that Australia’s business inventories edged up just 0.1% in the second quarter, suggesting a drag of roughly 0.4 percentage points on GDP ahead of Wednesday’s release.

• Labor market conditions remained firm, as ANZ-Indeed Job Ads rose 0.1% month-over-month in August, recovering from July’s decline.

• Additionally, House prices surged in August to a fresh record high, driven by stronger buyer demand following the central bank’s third rate cut. Meanwhile, building approvals declined in July after a strong rebound in June. 

•  Immediate resistance is located at 0.6586(Higher BB), any close above will push the pair towards 0.6626(23.6%fib)

•  Support is seen at 0.6501(SMA 20) and break below could take the pair towards 0.6474(38.2%fib).

 Recommendation: Good to buy around 0.6530 with stop loss of 0.6450 and target price of 0.6600