AUDUSD – Aussie Dollar Nosedives Post Employment Report

AUDUSD – Aussie Dollar Nosedives Post Employment Report

Key Highlights

  • Australian Dollar remained under a lot of bearish pressure vs the US Dollar recently, and traded below 0.7300.
  • There is a bearish trend line formed on the hourly chart of the AUDUSD pair, which earlier acted as a downside move catalyst.
  • Australian Employment Change released by the Australian Bureau of Statistics posted a reading of 10.8K in April 2016, compared with the forecast of 12.5K.
  • Australian Unemployment Rate came in at 5.7%, whereas the market was expecting 5.8%.

AUDUSD Technical Analysis

The Aussie Dollar recently broke a major support area of 0.7250 vs the US Dollar and traded as low as 0.7207 after the Australian Employment Change report.

AUDUSD

There is a bearish trend line formed on the hourly chart of the AUDUSD pair, which earlier acted as a resistance and pushed the pair down.

There is a chance of a minor correction in the near term, but the Aussie dollar may struggle near the broken support area of 0.7250, which might now act as a resistance.

Australian Employment Change

Today in Australia, there was a major economic release. The Employment Change, which is a measure of the change in the number of employed people in Australia was released by the Australian Bureau of Statistics. The forecast was slated for a chance of 12.5K in April 2016. However, the change was a bit lower, as it came in at 10.8K.

Moreover, the Australian Unemployment Rate came in at 5.7%, better than the forecast. The report stated that “Over the past month, trend employment increased by 4,100 persons to 11,910,800 persons – a monthly growth rate of 0.03 per cent. This monthly growth rate was below the monthly average over the past 20 years (0.15 per cent), and down further from the recent peak of 0.26 per cent in October 2015”.

Overall, there was nothing much for the Aussie Dollar buyers, which ignited a downside move in AUDUSD.

US Initial Jobless Claims

Today in the US, the Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance will be released by the US Department of Labor. The forecast is slated for a decline in the claims from 294K this time.

If there is no major decrease in the claims, then the US Dollar may come under a bit of pressure in the short term.



Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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