Australia's jobs data disappointed in a big way, snapping the running streak in AUD/USD.
- Aussie was supported ahead of the data on a higher Yuan fix and with Shanghai composite expected to open up 0.5%.
- Tepid China inflation data which came in at 1.8% y/y slightly below 1.9% expected, and poor Australian jobs data saw the pair hit session lows at 0.7134.
- The pair has since recovered some losses to currently trade at 0.7165, but finds tough resistance at 0.72 levels.
- 0.72 is strong resistance for the pair which is a falling trendline and psychological level, breaks above will take the pair to 0.7242 (Feb 4th highs).
- Ichi cloud is falling and daily Stochs and RSI have turned lower, suggesting downward momentum for the pair. We also see a bearish 5 and 10 DMA crossover.
- Close below daily cloud (currently spanning 0.7131 - 0.7156) will see pair test rising trendline at 0.7035.
