Forex Flash: AUD/USD blips higher post labour numbers - OCBC Bank

Emmanuel Ng of OCBC Bank notes that Australian labour market readings early this morning yielded a positive surprise with AUD/USD blipping higher in sympathy, thus underscoring his relatively more constructive view towards the currency in recent sessions.

He adds, “Note that any sustained breach above the 200-day MA (1.0360) and the 55-day MA (1.0384) may invite a test towards 1.0450. Further, looking to USD/JPY, Ng notes that supported US yields and political support for deputy BOJ governor nominee Iwata (perceived as an ultra dove) may continue to keep the pair resistant to downside dips despite the more consolidative tone in the pair of late. Initial resistance is expected on approach of the 96.70 area while 94.70 may present a test of support for any consolidative price action.