Aussie traders will be keeping a close eye on tomorrow’s employment data, with bulls hoping for a strong reading. That might be difficult, given the way the Chinese economy (which has a major impact on Australia) has been performing; the weekend’s trade data was particularly worrying given the drop in exports.
For the moment, AUD/USD is heading towards the 200-day moving average and the early March lows, where we saw the strong bounce last week that took us to the $0.91 level.
The rally higher faltered at the 50-DMA, which coincided with resistance around $0.9154, meaning that the bias remains to the downside. If the 200-DMA is broken we are looking at a retest of the February lows around the $0.8700 level. It appears, for now, to be make or break time for the currency cross.