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FxWirePro: AUD/USD pares some of the previous session's losses, upside could be limited

Chart - Courtesy Trading View 

Technical Analysis:

- AUD/USD was trading 0.65% higher on the day at 0.6998 at around 06:00 GMT

- The pair has pared some of the previous session's losses and has retraced above 5-DMA

- Major trend in the pair remains bearish as evidenced by the GMMA indicator

- Stiff resistance seen upto 0.7070, 20-DMA and 21-EMAs, break above could change near-term dynamics 

Fundamental Overview:

Australian and New Zealand dollars jumped amid signs of an easing in Shanghai's coronavirus lockdown

The Australian dollar also found additional support from a tick down in Australian unemployment rate.

Aussie jobs report flashed mixed reports during early Thursday. 

The headline Unemployment Rate matched 3.9% forecast while refreshing the all-time low but Employment Change fell to 4K, versus the market consensus of 30K and 17.9K prior.

Given the softer Employment Change and Wage Price Index , the RBA’s 40 bps rate hikes are questionable at the moment and could cap upside in the pair.

Major Support Levels: 0.6976 (5-DMA), 0.6837 (Lower BB)

Major Resistance Levels: 0.7047 (20-DMA), 0.7070 (21-EMA)

Summary: AUD/USD upside look limited. Scope for downside resumption. Retest of 0.6828 (May 12 and yearly lows likely).

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