• AUD/USD edged higher on Friday as traders awaited key U.S. jobs data expected to firm up the case for an interest rate cut by the Federal Reserve.
• The upcoming U.S. payrolls report is forecast to show job growth of 78,000 in August versus 73,000 in July.
•Fed policymakers have highlighted labor market weakness in advocating for rate cuts, boosting bets on a near-term rate move.
• According to CME’s FedWatch tool, traders expect with near 100% probability a 25-basis-point cut at the September 17 Fed meeting.
•Domestically, stronger-than-expected economic data this week has prompted investors to scale back bets on future RBA rate cuts.
• Immediate resistance is located at 0.6590(Higher BB), any close above will push the pair towards 0.6646(23.6%fib)
• Support is seen at 0.6497(38.2%fib) and break below could take the pair towards 0.6416(Lower BB).
Recommendation: Good to sell around 0.6550 with stop loss of 0.6650 and target price of 0.6450
