The Australian Dollar (AUD) has been unable to hold the key level around 0.6750 against the US Dollar (USD) Friday dropping to close out the week at 0.6675. Risk took on water post the release of the US Non-farm Payroll release Friday with the jobs report coming in poor dragging risk currencies lower. Unemployment ticked lower from 4.3% to 4.2% with markets digesting this week’s inflation report and next week’s Federal Reserve monetary policy and whether the central bank will only cut 25 points instead of the earlier forecasted 50 points. Odds now of quarter percent cut are now around 75% pending how inflation prints Thursday. Year on year numbers is predicted to come in at 2.6% down from 2.9%, anything north of 2.6% will be a game changer. Action above 0.6700 this week will be challenging.
Current Level: 0.6652
Resistance: 0.6700
Support: 0.6620
Last Weeks Range: 0.6684- 0.6794