AUD/USD seems to be in neutral territory at the moment, playing a range between $0.8000 and $0.8300. This is quite impressive considering the turmoil in global commodities and all the surrounding growth concerns.
ANZ mounted pressure on the RBA today after coming out with a 50-basis-point rate cut call over the first half. This is quite aggressive and, considering the market is only pricing in 40 basis points over the next 12-months, investors are likely to take this with a hint of salt.
We have seen a positive reaction to a surprise jump in December jobs numbers today. The Australian economy registered 37,400 jobs added with the unemployment rate dropping to 6.1%.
Both these readings were much better than expected and the participation rate even ticked a bit higher. Another positive is that the jobs added were all full-time employment.
This has seen AUD/USD pop up to the $0.8200 region and I still feel levels closer to $0.8300 would be the ideal sell zone. At these levels, the pair seems like it has enough momentum to squeeze a bit higher.
As a result, I feel traders should exercise some patience and look to sell at higher levels when the medium-term downtrend is tested.