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).
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