FXstreet.com (Córdoba) - The Australian dollar benefitted from the strong US nonfarm payrolls reading and jumped from daily lows versus the dollar, underpinned by the rise in stocks.
AUD/USD jumped over 30 pips from lows, erasing intraday losses, before stalling just shy of the 1.0400 psychological barrier. At time of writing, AUD/USD is trading at the 1.0390 area, virtually unchanged since opening.
From a technical view, Valeria Bednarik, chief analyst at FXstreet.com notes that AUD/USD remains pretty bullish in the short term, although the pair has been trapped between 1.0300 and 1.0410 for the last week. "It is mostly a range play there, with chances of a break higher rather than lower", says the analyst. "Once above 1.0410, the pair has scope to extend near 1.0450 today, while a daily close above 1.0400 should signal more gains ahead".
"Still the range is there, and failure around the top may see a retracement back to 1.0360 short term talking. However, as long as above 1.0335, the pair is bullish", Bednarik adds.
