AUD/USD Pops and Drops on Upbeat Aus Jobs Data
The AUD/USD pair reverses a 25-pips knee-jerk spike seen following the release of the Australian jobs data, which bettered estimates.
AUD/USD fails near daily highs
Currently, the AUD/USD pair drops -0.13% to 0.7642, quickly fading a spike to 0.7663 shortly after the data release. The AUD bulls cheered the domestic employment data in an initial reaction, although immediately shaved-off gains and reverted to the red as markets assess the jobs data against the backdrop of RBA’s more scope for easing in the coming months.
The Australian jobless rate fell to 5.7% in March versus 5.8% previous, while the employment change came in at +26.1k last month against +17.0k expected and much stronger than +0.3k last.
The bulls appear unimpressed by the Aussie jobs as Moody’s warning over the ballooning Australian government continues to weigh on the AUD/USD pair. Moreover, the ongoing weakness surrounding the black also dampens the sentiment around the resource-linked Aussie.
With the Aus jobs data behind, markets shift their focus towards the US inflation report, particularly after the latest weak US retail sales and PPI figures, while Friday’s China data deluge is expected to keep the traders unnerved going forward.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7664/70 (daily high/ pivot) above which gains could be extended to the next hurdle located at 0.7700 (round number). On the flip side, the immediate support located at 0.7628/09 (5-DMA/ 1h 100-SMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7588/83 (daily S2/ Apr 12 High).