AUD/USD rises back to the 0.7000 area as the US dollar loses momentum

• Aussie erases losses but remains limited around 0.7000.
• Greenback posts mixed results on a limited session for financial markets.

The AUSD/USD pair bounced from 0.6970 and climbed to 0.7011 but again is having difficulties extending the move higher. As of writing, it is hovering around 0.7000, flat for the day.

The rebound in AUD/USD took place amid a pullback of the US dollar across the board. Economic data from the US came in mixed, with a positive surprise from June retail sales that was mostly ignored by market participants. In Wall Street, equity prices are mostly in red but off lows.

Earlier on Thursday, the Australian employment report showed better-than-expected numbers with a change in employment of 211K.  “On balance the overall report for June was better than expected but taking the gloss off somewhat is the upward revision to the unemployed in May, from 227k to 264k. If we are to see a further improvement in the labour market, the employment to population ratio needs to rise, the recovery has been mild, until then many will remain dislocated from the labour market”, explained analysts at TD Securities.

Still unable to run above 0.7000

The outlook remains positive from a technical perspective but AUD/USD needs to post a daily close clearly above 0.7015 in order to clear the way to more gains. The next strong resistance above is seen at 0.7060. The aussie continues to trade near and for moments above 0.7000 but it continues to be unable to make a run higher.

On the flip side, the immediate short-term support is seen at 0.6975 and the key level is 0.6920. A slide under 0.6920, would open the doors for a potential move to 0.6800.

Technical levels