FXStreet (Guatemala) - With key data coming up for Australia’s economy, Ivan Delgado who is Head of Asian Editors explained in his article that the the current market environment for AUD/USD continues to be in consolidation phase between 0.8890/.89 and 0.9080, with the possibility of having found a temporary bottom for the week at 0.8923 dependent almost entirely on the jobs report in Australia, main driver of price action to follow in Asia.

Key Quotes:

“A steady rise off 0.8923 low – 50/55dma cross – saw the AUD/USD break above the 0.8970/75 resistance to consolidate right above it Wed ahead of the Australian jobs report. The price stalled ahead of a descending trendline coming from March 7 high, with all eyes on the next resistance level at 0.9010, with a break higher exposing 0.9050 area – multiple topside failure last week – ahead of 0.9070/80”.

“On the downside, immediate support is found at 0.8970/75 before deeper declines to 0.8923 and 0.8890 can be seen”.

“Given the worsened sentiment in the AUD/USD, there was a growing perception/risk that even a positive Aus jobs may be used as an excuse to sell the bearish sentiment, however, after the higher exchange rate adjustment - daily bullish pin bar formed - that risk of fading a positive number appears to be have dissipated somewhat as sentiment becomes more finely balanced, thus the jobs data should serve as a more reliable indicator to set the next directional bias for the session”.

“Potential market reaction will be based on how the result deviate from expectations, which at present is looking for 18 k jobs added and the jobless rate to remain at 6.0%”.

“Downbeat data: An increase in the jobless rate and/or jobs added well below 18k – even more reason to sell if negative – would be bearish for the Australian Dollar, likely to target 0.8923 low ahead of 0.8900/.8890 support”.