Positive AUDUSD Technicals, Employment Coming Up

Aussie outperformed most of the G10 on Wednesday supported by positive equity sentiment. AUDUSD fell sharply following the FOMC decision to keep rates unchanged and included a hawkish set of projections but Fed Chairman Powell’s comments that the upcoming meetings are “live” saw it recover most of its losses. After an intraday low of 0.6756 post-FOMC, it is now trading around 0.6798. The USD index is 0.3% lower.

• AUDUSD reached an intraday high of 0.6836 on Wednesday, which broke key resistance of 0.6818. It has now printed a higher low for ten consecutive sessions, which hasn’t happened since late 2017. Resistance at 0.6865, the February 22 high, has now been opened up. Initial support lies at 0.6693, the June 9 low.
• AUDNZD fell 0.5% to 1.0947 but AUDJPY rose 0.4% to 95.22. Aussie is up 0.1% versus the euro and pound to 0.6275 and 0.5368 respectively.
• Equity markets were generally higher with the S&P +0.1% and the Eurostoxx +0.7%. WTI fell 1.1% to $68.65/bbl. Copper rose 0.7% and iron ore is around $113/t.
• Today June MI consumer inflation expectations print and then May labour market data. The unemployment rate is expected to stay at 3.7% with a 17.5k job gain. The RBA bulletin is also released.