• AUD/USD edged lower from multi-month highs on Thursday as investors turned cautious ahead of a key U.S. jobs report that could strengthen the case for imminent rate cuts by the Federal Reserve.
• Markets remain on edge after a soft U.S. private employment reading pointed to potential downside risks for Friday’s non-farm payrolls report.
• On the data front, Australia’s goods trade surplus fell to its lowest level in nearly five years in May, dragged down by weaker LNG exports even as capital goods imports surged.
• The Australian Bureau of Statistics reported that Australia’s goods trade surplus narrowed sharply to A$2.2 billion in May, down from a downwardly revised A$4.9 billion in April.
• This comes after Wednesday’s disappointing retail sales report, which pointed to subdued domestic consumption in May reinforcing expectations of a rate cut at next week’s Reserve Bank of Australia policy meeting.
• Immediate resistance is located at 0.6615(Higher BB), any close above will push the pair towards 0.6676(23.6%fib).
• Support is seen at 0.6527 (38.2%fib) and break below could take the pair towards 0.6462(Jun 17th low).
Recommendation: Good to buy around 0.6530 with stop loss of 0.6450 and target price of 0.6650
