The aussie had a solid showing in trading yesterday, buoyed by better risk sentiment and one can also argue that hopes for China stimulus is also helping as it does provide some calmer tones for the Chinese economy - which indirectly impacts the aussie.
But against the dollar, the currency benefited as the greenback struggled with AUD/USD pushing back above 0.7200 to near 0.7300 earlier today. Then, we had the more solid jobs report here and that is providing some impetus for a push above 0.7300 and notably above its 200-day moving average (blue line) @ 0.7302.
That is a key line in the sand to watch in the day ahead.
For buyers, holding a break above that sets the stage for a potential push back towards 0.7400 next.
In the bigger picture though, I still reckon the aussie is one of the more underappreciated currencies with AUD/JPY having been a solid bet since February trading.
Given economic conditions, the RBA is likely to accelerate their timeline to hike rates and given how markets are not expecting much, I continue to see that as a major tailwind for the aussie to gain - especially against the likes of the yen, capitalising on policy divergence.
