AUD/USD reverses dismal Aussie jobs data-led dip, steady near 0.6875 area
|- Weaker Australian jobs report exerted some intraday pressure on the aussie.
- A modest USD weakness helped limit any deeper losses for the AUD/USD pair.
- A rise in COVID-19 cases and geopolitical tensions might cap any strong gains.
The AUD/USD pair managed to rebound around 40 pips from daily swing lows and was last seen trading in the neutral territory, around the 0.6875 region.
The pair witnessed some selling during the Asian session on Thursday following the release of weaker-than-expected Australian monthly employment details. According to the report, the economy shed 227.7K jobs in May as compared to a decline of 125K anticipated. Adding to this, the previous month's reading was also to show a loss of 607.4K loss against 594.3K reported previously. Meanwhile, the unemployment rate jumped April's 6.2% to 7.1% during the reported month.
The dismal jobs data comes on the back of the unease across the global financial markets amid concerns over the second wave of coronavirus infections and geopolitical tensions in Asia. This, in turn, took its toll on perceived riskier currencies, including the aussie, and prompted some intraday selling around the AUD/USD pair. However, a mildly weaker tone surrounding the US dollar helped limit any deeper losses for the major, at least for the time being.
The pair managed to find some support near the 0.6835 region, which should now act as a key pivotal point for intraday traders. Any subsequent fall now seems to accelerate the fall towards back towards weekly lows, around the 0.6775 area. The mentioned level coincides with a support marked by the lower end of a near three-month-old ascending trend-channel.
Moving ahead, market participants now look forward to the US economic docket, highlighting the release of Initial Weekly Jobless Claims and Philly Fed Manufacturing Index. The data might influence the USD price dynamics, which coupled with the broader market risk sentiment might produce some meaningful trading opportunities later during the early North American session.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.