EURAUD Remains Elevated Post AUS Employment Report09 July, 2015 by Aayush Jindal in Market Analysis
- Euro surged higher this week against the Aussie Dollar, as the latter one got hammered due to risk off sentiment.
- EURAUD climbed towards 1.4950-60 where it found sellers and currently correcting lower.
- Chinese Consumer Price Index is released by the National Bureau of Statistics of China remained flat at 0% in June 2015 whereas the market was expecting a minor decline.
- Australian Employment Change released by the Australian Bureau of Statistics registered an increase of +7.3K in June 2015, whereas the market was expecting a decline of -5.0K.
- Australian Unemployment Rate came in at 6%, compared with the forecast of 6.1%.
Australian Employment Report
Earlier during the Asian session, the Australian 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 market was expecting a decline of -5.0K in June 2015, but the outcome was way above the forecast with a gain of 7.3K. The Unemployment Rate was also better than the market expectation, as it came in at 6%, compared with the forecast of 6.1%.
The report stated that “Unemployment increased 12,800 to 756,100. The number of unemployed persons looking for full-time work increased 27,200 to 541,200 and the number of unemployed persons only looking for part-time work decreased 14,500 to 214,900.”
Overall, the outcome was above the expectation, which helped the Aussie Dollar to gain bids against the US Dollar and the Euro.
There was one more important release, as the Chinese Consumer Price Index was released by the National Bureau of Statistics of China. The market was expecting a decline of 0.1% in June 2015, compared with the preceding month. However, the report stated that there was no change in the CPI in June 2015. It helped the pairs like EURUSD and AUDUSD to gain ground.
EURAUD Technical Analysis
The Euro surged higher versus the Aussie dollar this week, and traded above 1.4900. After the Australian employment report was released, the EURAUD pair moved down and it looks like the pair might decline further.
However, there are a couple of important bullish trend lines formed on the hourly chart of the EURAUD pair that are likely to act as a support if the pair moves lower from the current levels.