AUD/USD climbs higher toward 0.7200 as USD struggles to find demand
- AUD/USD is staging a rebound following Tuesday's drop.
- US Dollar Index goes into consolidation near 93.50.
- Focus shifts to labour market report from Australia.
The AUD/USD pair closed the first two days of the week in the negative territory and staged a technical rebound on Wednesday. As of writing, the pair was up 0.17% on a daily basis at 0.7172.
The data from Australia showed that the Westpac Consumer Confidence in October declined to 11.9% from 18% in September. However, this reading came in slightly higher than the market expectation of 9.9% and helped the AUD stay resilient against its rivals.
On the other hand, the US Dollar Index, which gained 0.53% boosted by safe-haven flows on Tuesday, is staying in a consolidation phase near 93.50, allowing AUD/USD to stay in the positive territory.
Eyes on Australian jobs report
Later in the day, the Producer Price Index (PPI) will be the only data featured in the US economic docket. More importantly, the Australian Bureau of Statistics will release its labour market report in the early trading hours of the Asian session on Thursday.
Investors expect the Employment Change to arrive at -35K in September and see the Unemployment Rate rising from 6.8% to 7.1%. A weaker-than-expected jobs report could weigh on the AUD is it would likely cause investors to start pricing a dovish shift in the Reserve Bank of Australia's (RBA) policy outlook.
Technical levels to watch for