AUD/USD jumps to 0.72 as Aussie full-time jobs surged in August
|- The Aussie dollar is building on the technical recovery on the back of an upbeat Aussie labor market data.
- The 10-year US-AU yield spread has not moved much after the release of the labor data, so bulls need to observe caution.
The technical recovery in the AUD/USD is gathering pace on the back of an upbeat Aussie labor data release.
At press time, the currency pair is trading at a session high of 0.72, having charted a bullish doji reversal yesterday. More importantly, the pair has added close to 30 pips in the last few minutes.
The Australian economy added 44,000 jobs, beating the estimate of 15,000 and up from the previous month's print of -3,900. Notably, the full-time jobs increased by 33,700, following an addition of 19,300 jobs in July. Meanwhile, the jobless rates remained unchanged at 5.3 percent as expected.
An above-forecast headline figure and the sharp rise in the full-time jobs is good news for the AUD. However, the response from the bond markets is muted at best. For instance, the spread between the US 10-year yield and the Aussie 10-year yield has dropped by just one basis point to 36 basis points (bps) after the release of the labor data. As a result, the AUD/USD may have a tough time holding on to a session high of 0.72.
AUD/USD Technical Levels
Resistance: 0.7202 (Aug. 15 low), 0.7238 (Aug. 24 low), 0.7256 (61.8% Fib R of 0.7362/0.7085)
Support: 0.7163 (10-day moving average), 0.7144 (Sep. 5 low), 0.7134 (5-day moving average)
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