A double boost for the aussie today

<p>And with good reason, as it is benefiting from a solid labour market report as well as a much stronger Chinese yuan. On the latter, the PBOC moved to ease cross-border funding and also fixed the onshore yuan extremely strongly today.</p><ul><li><a href="https://www.forexlive.com/news/australia-june-jobs-326k-vs-15k-expected-unemployment-rate-35-vs-36-exp-20230720/" target="_blank" rel="follow">Australia (June ) Jobs +32.6K (vs. +15K expected) &amp; Unemployment rate 3.5% (vs. 3.6% exp)</a></li><li><a href="https://www.forexlive.com/news/pboc-eases-cross-border-funding-20230720/" target="_blank" rel="follow">PBOC eases cross-border funding</a></li><li><a href="https://www.forexlive.com/centralbank/pboc-sets-usd-cny-reference-rate-for-today-at-7-1466-vs-estimate-at-72233-20230720/" target="_blank" rel="follow">PBOC sets USD/ CNY reference rate for today at 7. 1466 (vs. estimate at 7.2233)</a></li></ul><p>The Chinese central bank actions seem to be aimed at punishing speculators, after a big drop in the currency in trading yesterday.</p><p>In any case, the headlines when put together have helped to provide a double boost for the aussie with AUD/USD up 0.9% to 0.6830 levels currently:</p><p>This erases the losses from the past two days but buyers are still not really going anywhere just yet. There is a large option expiry at 0.6815 today but the level doesn't hold much technical significance. The key resistance near 0.6900 in which we have already seen a double-top pattern in June and July is the more important level to watch for any upside potential in AUD/USD.</p>

This article was written by Justin Low at www.forexlive.com.