• AUD/USD failed to close below 61.8% Fib of Jan to Apr rally (0.7212) on Thursday. 
   
• The pair is now consolidating above the 61.8% Fib level and weakness to resume only on close below.
   
• Positive comments on Australia’s inflation outlook by RBA's Edwards in a WSJ interview likely to keep AUD supported.
   
• Edwards said that there was no urgency to restore inflation to target, adding that inflationary expectations remain anchored.
   
• Recovery in the oil prices and the Asian equities also helping lift demand for higher-yielding currencies.
   
• AUD/USD currently trading around 0.7230, finds stiff resistance at 0.7242. Break above could find next hurdle at 0.7259 (5-DMA).
   
• On the downside 61.8% Fib (0.7212) is immediate support, break below sees next support at 0.7176 (May 19th low).
   
• We had advised a short in the pair (http://www.econotimes.com/FxWirePro-AUD-USD-breaks-618-Fib-hits-fresh-11-week-lows-on-poor-jobs-data-210104).
   
• Recommend holding for downside. Bearish invalidation above 0.73