The Australian dollar initially got a push higher during the trading session on Friday but gave back the gains rather quickly after the jobs never came out. There is a massive amount of resistance above, and keep in mind that the Australian dollar is one of the riverways for traders to play Asia, as it is a proxy for growth in that region. The Australian dollar initially surged much higher, but almost immediately gave back quite a bit of the gains. This is a market that will be concerned about headlines, and most importantly the reaction of the Chinese. I think given enough time, we will pullback although these rallies will occur occasionally.
The 0.7375 level looks to be rather supportive, based upon the hourly charge. At this point, if we were to break above the 0.75 level above, that would be a very bullish sign, but also very unlikely in the short term. I simply cannot see people willing to take on this type of danger ahead of the weekend when so many unknowns are out there. It appears that the trade work talks are escalating and not calming down, and that of course will continue to be a major issue as Australia supplies Asia was so many of its raw materials for that very same trade.