AUD/USD fades a spike to 0.7990, solid Aus jobs ignored?

The AUD/USD pair rallied hard and posted fresh two-year tops at 0.7987 in a knee-jerk reaction to solid Australian jobs report, although failed to sustain at higher levels and reverted to the familiar range near 0.7360 region.

AUD/USD drops back to test 0.7950

The Aussie erased most gains and now trades near the mid-point of 0.79 handle, after having ran into fresh offers last minutes, despite stronger-than expected Aus full time employment numbers, as investors assess Australia’s mixed NAB business confidence data, The NAB business  confidence gauge highlighted that the exuberance in the business sector contradicts household sector slowdown.

Meanwhile, the US dollar trades broadly subdued, having limited impact on the Aussie pair, while renewed weakness in oil also adds to the latest move lower in the commodity. Moreover, increased nervousness ahead of the key BOJ and ECB monetary policy decisions also undermine the sentiment behind the higher-yielding currency AUD.

AUD/USD Levels to watch   

At 0.7954, the pair finds the immediate resistance at 0.7987 (2-yr highs) above which gains could be extended to the next hurdle located 0.8000 (round figure) and 0.8050 (psychological levels). On the flip side, the immediate support is located at 0.7900 (round figure). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7881 (classic S3) and below that 0.7839 (Jul 14 top).