FxWirePro: AUD/USD rallies as traders scale back Fed rate hike bets

• AUD/USD strengthen on Friday as U.S. dollar retreated following softer-than-expected U.S. non-farm payrolls data.

• U.S. job growth slowed sharply in June and payroll gains for the prior two months were revised lower, according to data released on Thursday, pointing to a cooling labour market.

•   The weaker labour market report prompted investors to scale back expectations for further Federal Reserve policy tightening, providing support for higher-yielding currencies such as the Australian dollar..

• Market pricing shifted notably after the jobs report, with the probability of a September Federal Reserve rate hike falling to around 54% from 67% before the release.

•Meanwhile , Australia's S&P Global Composite PMI was revised up to 50.4 in June from a preliminary estimate of 49.8, driven by a return to expansion in services activity (50.5 vs 48.7) and stronger manufacturing growth (51.5 vs 50.7)..

•  Immediate resistance is located at 0.6949(38.2%fib), any close above will push the pair towards 0.6978(SMA 20).

•  Support is seen at 0.6913 (Daily low) and break below could take the pair towards 0.6839(23.6%fib).

 Recommendation: Good to buy around 0.6930 with stop loss of 0.6850  and target price of 0.7000