AUD/USD testing the descending hourly resistance at 0.7520 and 20 1hr sma

Currently, AUD/USD is trading at 0.7500, down -0.42% on the day, having posted a daily high at 0.7536 and low at 0.7491.

AUD/USD has made a minor correction and is trading back on the 0.75 handle and has eyes on the descending 20 sma at 0.7513 and 0.7520 resistance area that is unlikely to give in the absence of a catalyst and a dollar strong environment. The carry-over from a strong euro on a less dovish ECB is supporting the recovery, so nothing domestic as such and the general theme remains that the nonfarm payrolls will be a strong headline and will encourage bulls to stay with short treasuries, risk-on with a strong dollar leading up to an expected rate hike from the Fed next week.

US: Focus on jobless claims data – Danske Bank

However, there are still some concerns around the US labour market coming from a number of economists and analysts. Should the Fed hold off from hiking next week, some of the variables that could be a concern to the Fed are discussed below:

For an alternative view on the proposed Fed hike next week: Just a reason or two to short the 'March rate hike herd'

Meanwhile, outside of any shocks, the RBA is on hold at 1.5% until 2018 by the sounds of things, with them being satisfied with the status quo and positive developments domestically, but a rate hike could come before then on a Global turnaround and faster pace of a recovery, benefiting commodities and the Australian economy.  Much will depend on consumption and the labour market domestically on that front and indeed the inflation outlook while still well behind the RBA's target. 

AUD/USD levels

The Aussie has been better offered since breaking below the previous support at 0.7540 and last night's Chinese CPI's seemed to have dented the bulls pride further with a sell on rallies from 0.7505 and 0.7495 to the 20 1hr sma's resistance around the 0.7520 level. 0.7490 is the recent support guarding the 200 smoothed sma on the daily time frame at 0.7450 guarding a break to 0.7300/10.