AUDUSD Chart Technical Outlook reversal might extend below 0.6555 if US NFP beats expectations
Aussie Dollar’s recovery was capped on Thursday, as a combination of hawkish comments by Fed speakers and growing geopolitical concerns crushed risk appetite. Earlier today, the weaker-than-expected Australian thread balance has failed to support the pair.
Investors’ appetite for risk triggered by the soft US services and jobless claims figures was crushed by cautious comments by Fed speakers. Minneapolis Fed President Neel Kashkari struck the hawkish note putting into question that the bank might need to cut rates at all this year, which sent the US Dollar higher.
In this scenario, all eyes are on the US Nonfarm Payrolls report. The pair needs a soft increase, preferably with low wage growth to extend its recovery. A strong NFP reading would send the AUD below 0.6655 support looking for the 0.6485-0.6500 support area. Resistances are 0.6635 and 0.6666.
