Despite a very strong jobs data early Thursday, the Austalian dollar looks less energized for a rally above Tuesday's high of 0.9964 to 1.0001 to complete the 'right shoulder' of a 'head and shoulders' pattern with 'head' at 1.0181 formed on early last month.
Australia added 54,600 jobs in November, beating market expectations of 20,000 additions and compared with 29,700 in the previous month, data showed at 00:30 GMT.
There are ample reasons for AUD/USD to run bullish with a set of hawkish data released in the last few days, but the commodity currency probably looked for more fundamental support from China, its largest consumer, which is now in the business of cooling down the economy.
A study on the volume trend since October shows that there was more activity during bearish legs, suggesting the pair needs strong two-way signals to retest the November 5 high. Momentum indicators suggest a steady pair as of now.
A weak-euro scenario is generally expected to support the greenback for quite some time, making the upward journey tough for the the pair. Latest example was news of Fitch downgrading Ireland on Thursday, pushing euro down to a session's low against the greenback.
On the way up, AUD/USD may face with resistance first (R1) at 0.9898 (38.2 percent of Fibonacci retracement from 1.0181 to 0.9723) and then at 0.9952 (50 percent - R2) before forming the right shoulder at 1.0001 (R3).
If the pair loses ground, one should see 0.9723-0.9707 region as firt support (S1) and then 0.9650 (S2), before heading to the 0.9611-0.9535 region (S3).
Weekly jobless claims numbers and October wholesale inventories data from the US may impact the pair during the next few hours but with a heavier calendar set for Friday, traders may look for the next session before making tougher calls.
Reuters/Michigan consumer sentiment index, October trade balance, November month's budget statement and imprt price index for November are scheduled for Friday.
At 11:42 GMT, AUD/USD was at 0.9845, off day's high of 0.9883 but still higher than Wednesday's close of 0.9794.