FxWirePro: AUD/USD extends gains on hawkish RBA, Aussie Employment data in focus

Chart - Courtesy Trading View 

Technical Analysis:

- AUD/USD is extending gains for the 3rd consecutive session

- The pair is hovering above 200H MA and GMMA indicator shows minor and major trend are bullish on the hourly charts

- 5-DMA has turned North, price action is below cloud, but Chikou span is biased higher

- Stochs and RSI show bullish rollover from oversold levels

Fundamental Overview:

Aussie buoyed across the board after RBA sounded more hawkish than expected  in its minutes.

The minutes showed that the RBA policymakers were considering the options of 15 basis points (bps), 25 bps, and 40 bps rate hike.

The minutes also showed that labor cost is rising in a tight labor market and the formation is expected to continue further.

Focus now remains on the release of Australia employment data on Thursday.  

Analysts expect 30k job additions to the labour force, higher than the prior print of 17k. While the Unemployment Rate is likely to improve to 3.9% from the former figure of 4%.

Major Support Levels: 0.6987 (200H MA), 0.6940 (5-DMA), 0.69

Major Resistance Levels: 0.7089 (21-EMA), 0.71, 0.7141 (200-week MA)

Summary: AUD/USD was trading with a slight bullish bias. 5-DMA is immediate support and retrace below will negate any further gains. On the flipside, scope for test of 21-EMA at 0.7089. Breakout above 21-EMA could change near-term dynamics.