AUD/USD: Pullback found support at 50DMA – OCBC

Australian Dollar (AUD) managed to claw back earlier losses as USD backpedalled on comments from Fed’s Waller. AUD was last at 0.6518, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Mild bearish momentum observed

"Earlier, there was downside surprise to AU labour market data – unemployment rate rose to 4-year high, employment change was +2k (vs. +20k expectations) while full time fell again -38.2k. Markets added to RBA rate cut profile -65bps for remainder of the year (vs. -56bps) while market continues to expect RBA to cut at the next MPC on 12 August.

"Mild bearish momentum observed but RSI rose modestly. 2-way trades; bias to buy dips. Resistance at 0.6530/50 levels (21 DMA, 61.8% fibo), 0.66 levels. Support at 0.6480 (50 DMA), 0.6420 (50% fibo retracement of 2024 high to 2025 low)."