AUD/USD: Corrective pullback on the daily chart – OCBC

Australian Dollar (AUD) slipped amid downside surprise to labour market data – from multiple aspects. AUD was last at 0.6472, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Risks skewed to the downside

"Employment change was +2k (vs. +20k expectations) while full time fell again -38.2k. Markets add to RBA rate cut profile -64bps for remainder of the year (vs. -56bps) while market continues to expect RBA to cut at the next MPC on 12 August."

"Daily momentum turned mild bearish while RSI fell. Risks skewed to the downside in the interim. Support at 0.6420 (50% fibo retracement of 2024 high to 2025 low). Resistance at 0.6530/50 levels (21 DMA, 61.8% fibo)."