AUD/USD: neutral at 0.7660/80 consolidating Aussie jobs/FOMC

Currently, AUD/USD is trading at 0.7677, down 0.00% on the day, having posted a daily high at 0.7685 and low at 0.7674.

The US dollar index is little changed overnight but remains soft and in the hands of the bears. The correction is evident and the 100.00 mark in the DXY is next hurdle to the downside that if broken could lead to a reversal of the Nov 0.7777 high's supply. 

Australian labour market: A disappointing rise in the unemployment rate - ANZ

However, the Aussie is drifting lower and subdued after yesterday's mixed messages from the labour market. The price fell back from the highs of 0.7720 down to 0.7663 overnight. For today,  there is nothing on the docket and yesterday's jobs data could continue to weigh on the Aussie. "Expect further consolidation between 0.7650 and 0.7740," suggested the analysts at Westpac.

AUD/USD 1-3 month

The same analysts at Westpac expect the Aussie to move lower to 0.7400: "The Fed’s assertive tightening bias plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar. Against that coal and iron ore are likely to sustain a good portion of their dramatic rises, and economic data for Q4 and Q1 should improve, but these forces are subservient to the US dollar’s trend. Australia’s AAA rating will remain an issue into the May budget. (23 Dec)"

AUD/USD levels

AUD/USD's 200-day ma at 0.7530 is a keen interest on the downside although while above here, the market remains better bid with a target of the aforementioned 0.7777 8 th November high.

Longer term outlook neutralising: 

Analysts at Commerzbank explained that the market remains capped by the 0.7778/.7850 2016 highs and the 38.2% retracement, but it is possible that it is base building. "Above 0.7622 20 day ma will allow for another run up to the 0.7740 recent high. Above 0.7850 would target the 200-month ma at 0.7939."