AUD/USD analysis: Australian employment data to lead the way

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7401

Australia expected to have added 17K new jobs in June.
Data ahead of employment figures anticipate another month of solid jobs' growth.

The AUD/USD pair recovered up to the 0.7400 region in the US afternoon, after trading as low as 0.7342. The ongoing bounce was backed by the solid performance of equities, mostly up worldwide, and easing dollar demand in the last trading session of the day. Australia will release today its June employment figures and is expected to have added 17K new jobs in the month, while the unemployment rate is seen steady at 5.4%. In May, the economy added 12,000 jobs, but part-time employment was up by 32.6K while full-time employment lost 20.6K positions. An increase in full-time jobs could be a bullish catalyst for the pair, and different indicators released all through the month, suggest that June figures will be upbeat, as according to a sector report, job's growth in the country’s mining industry has increased for the 13th consecutive month. The RBA Minutes showed that policymakers expect a continued solid growth in employment, which will gradually push the unemployment rate lower. Australia will also release the quarterly NAB's Business Confidence Index for Q2, previously at 7. Despite the latest recovery, the 4 hours chart shows that the upward potential remains limited as the pair is struggling with directionless 20 and 100 SMA both confined to a tight range, while technical indicators bounce from their daily lows, with the Momentum still in negative territory but the RSI aiming to surpass its mid-line.

Support levels: 0.7370 0.7335 0.7310

Resistance levels: 0.7410 0.7450 0.7490

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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