AUD/USD clings to recovery gains after US weekly jobless claims

The AUD/USD pair had a muted reaction to the release of US weekly jobless claims and held on to its recovery gains.

Currently trading around mid-0.7600s, the pair remained closer to session peak after US data showed weekly jobless claims decline by 12K to 234K for the week ended Feb. 3, down from previous week’s 246K and much-better-than 250K expected.

The data, however, extended little support to the greenback’s recovery move, with the key US Dollar Index stuck around 100.30 region, and did little to hinder the pair’s recovery move from 0.7600 neighborhood touched earlier during Asian session.

Meanwhile, the RBA governor Lowe's optimistic comments on the domestic economic outlook and exchange rate levels was also seen underpinning the Australian Dollar and assisted the pair to hold on to its recovery gains, albeit has failed to provide any additional boost.

Technical levels to watch

On a decisive move above 0.7650-55 area, the pair is likely to attempt a move towards 0.7700 handle above which the upward trajectory is more likely to get extended towards Nov. 2016 daily closing highs resistance near 0.7745-50 region.

Meanwhile on the downside, weakness below 0.7640 level might continue to find strong support near 0.7610-05 region, which if broken would accelerate the slide towards 0.7555-50 horizontal support, en-route 0.7535-30 region.

AG Markets Review