AUD/USD analysis: Australian employment taking center stage
AUD/USD Current price: 0.7215
- Australian economy expected to have added 20.0K new jobs in October.
- Aussie refuses to give up despite the sour tone of Wall Street.
The AUD/USD pair heads into the Asian opening trading around 0.7220, little changed daily basis but retaining the positive tone seen Tuesday, as it managed to post a higher high daily basis, advancing up to 0.7237 at the beginning of the day on broad dollar's weakness. The Aussie held on to gains despite the sour tone of Wall Street, partially helped by a modest uptick in commodities' prices and broad dollar's weakness. The Australian Q3 Wage Price indexes came as expected, up 0.6% QoQ and by 2.3% YoY. The AUD retained its positive tone despite mixed Chinese data, as September Retail Sales were up by just 8.6% vs. the expected 9.1% gain, although Industrial Production rose by more-than-expected, up 5.9% from August.
Australia will release today October employment data. The country is expected to have added 20.0K new jobs in the month, while the unemployment rate is seen ticking higher to 5.1% from 5.0%. Also, the country will release November Consumer Inflation Expectations, previously at 4.0%.
The pair is ignoring dollar's strength on European jitters, also Wall Street's slump. Its currently holding on to gains and the 4 hours chart offers a neutral-to-bullish stance, with the pair above all of its moving averages, as technical indicators head nowhere around their midlines. The pair holds above the 38.2% retracement of its latest bullish run, capped earlier in the day by the 50% retracement of the same advance, now the immediate resistance, with gains above the level opening doors for an advance up to 0.7302 this month high.
Support levels: 0.7200 0.7160 0.7130
Resistance levels: 0.7240 0.7300 0.7340
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.
