Aussie Dollar Facing an Uphill Task Post Employment Report11 June, 2015 by Aayush Jindal in Fundamental Analysis, Market Analysis, Technical Analysis
- Aussie Dollar rocketed higher during the Asian session, as the employment report released in Australian was better-than-expected.
- Australian Employment Change released by the Australian Bureau of Statistics came in at 42.0K in May 2015, compared to the expectation of 11.0K.
- AUDJPY pair surged higher after the report was published, but facing an important resistance area.
Australian Employment Report
Today, during the Asian session, the Australian Employment Change, i.e. 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 the Employment Change to stay around 11.0K in May 2015, compared with the preceding month. However, the outcome was a lot better, as the Employment Change came in at 42.0K. The best part was the unemployment rate, as it declined from the previous revised rate of 6.1% to 6% in May 2015. The report stated that the “Unemployment decreased 22,000 to 745,200. The number of unemployed persons looking for full-time work decreased 23,500 to 514,500 and the number of unemployed persons only looking for part-time work increased 1,500 to 230,800”.
Moreover, the participation rate came in at 64.7%, which was slightly lower compared with the expectation. Overall, the report was on the positive side, and helped the Aussie Dollar to gain bids against most major currencies, including the US Dollar and the Japanese Yen.
AUDJPY – Technical Analysis
As mentioned the AUDJPY pair traded higher, and moved by more than 50 pips to trade near a monster resistance area. There is a critical confluence area formed around 95.50-70, as there are many hurdles around the mentioned area. The 100 hourly simple moving average (SMA), 200 SMA, a couple of bearish trend lines and the 76.4% Fib retracement level of the last drop from the 96.09 high to 94.44 low are positioned around a same area. In short, buyers might face a tough time to take the pair higher moving ahead.
If the AUDJPY pair settles successfully above the 95.70 level, then there is a chance of it moving towards 96.00. On the downside, the 95.40 level can be seen as an immediate support area, followed by 95.10. The hourly RSI is above the 50 level, which is a bullish sign in the short term.