AUD/USD has staged a moderate bounce Thursday after a surprisingly upbeat jobs data eased some expectations of deep cuts to interest rates. The April labour report surprised on the upside, with 15,500 new jobs added versus a consensus of -5,500. The data triggered a wave of short covering in the Aussie with prices advancing higher from $1.0055 before topping out at $1.0120 as the market consolidated prior to Chinese trade data. The Aussie had started the session around $1.0040. Aussie prices were also given additional leverage by reports of some speculative accounts putting on shorts in EUR/AUD. AUD/USD pared back around 30 pips from $1.0115 to $1.0085 in the wake of some weak Chinese import and export data, with the pair currently trading $1.0094. Traders report fresh Aussie selling from momentum funds expecting prices to return to their lower levels prior to the Australian jobs data. Medium demand is seen around the $1.0060/55 area, whilst some strong offers are touted around $1.0110.
EasyForexNews Research Team