A downward drift for AUDUSD05 June, 2015 by Aayush Jindal in Fundamental Analysis, Market Analysis
- Australian Dollar after trading towards 0.7800 against the US Dollar failed to maintain gains and looks set for a move lower.
- In the US, the Challenger Job Cuts was released by Challenger, Grey & Christmas, which posted a reading of 41.034K in May 2015, lower compared with the last reading of 61.582K.
- US Initial Jobless Claims were also published by the US Department of Labor, which declined from 282K to 276K in the week ending May 30.
US Initial Jobless Claims
Earlier during the NY session, the US Initial Jobless Claims, which represents the number of people filing first-time claims for state unemployment insurance was released by the US Department of Labor. The market was expecting a decline from the last reading of 282K to 279K in the week ending May 30. However, the outcome was above the expectation, as the US Initial Jobless Claims managed to register a reading of 276K. Now, the 4-week moving average is at 274,750, i.e. 2,750 more than compared to the previous week’s revised average of 272,000.
The US continuing jobless claims data was also on the better side, as it registered a reading of 2.196M, which was less than the forecast of 2.208M. Overall, the data was encouraging and helping the greenback to gain bids in the short term.
US Challenger Jobs Cuts
There was one more release scheduled in the US, as the Challenger Job Cuts, which provides information on the number of announced corporate layoffs by industry and region was released by Challenger, Grey & Christmas. The report was positive, as it highlighted that “After reaching a three year high in April, planned job cuts announced by U.S.-based firms declined sharply in May, falling by 33 percent to 41,034”.
AUDUSD – Technical Analysis
The Aussie dollar struggle against the US Dollar continued, as the recent bullish ride in AUDUSD failed around the 0.7800 level. The mentioned level was sitting around a bearish trend line on the 4-hours chart along with the 61.8% Fib retracement level of the last leg from the 0.7930 high to 0.7597 low.
Moreover, the pair also has a critical resistance at a confluence area of the 100 and 200 simple moving averages (4H) at 0.7850. On the downside, the 0.7680 might act as a support for AUDUSD.