AUD/USD Analysis: bulls still have a chance

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7107

Mixed Australian employment data fell short of backing Aussie gains.
AUD/USD settles above 0.7100 compliments to Wall Street's sharp recovery.

The AUD/USD pair ends the day as it started, a couple of pips above 0.7100. The Aussie hit a fresh March high of 0.7149 overnight, underpinned by dollar's weakness and a mixed Australian employment report. The market was impressed by the unemployment rate, which fell to 3.9%, its lowest in almost eight years. However, jobs' creation disappointed, as the economy added just 4.6K new jobs, and that was the result of 11.9K new part-time positions, and a decline in full-time ones of 7.3K. The unimpressive numbers fell short of supporting sustainable gains, with the pair then falling to 0.7089. Worse-than-expected New Zealand Q4 GDP added pressure on neighbor Aussie. Wall Street's strength helped the pair bounce from this last.

The pair heads into the Asian opening trading around the 0.7100 figure, having lost the upward strength, but still with chances of recovering the ground lost, given that, in the 4 hours chart, the price is battling to hold above converging 20 and 200 SMA, and with the shortest one maintaining its bullish stance. Technical indicators in the mentioned chart fell from overbought readings straight to their midlines, where the decline stalled, somehow suggesting selling interest decreased when the pair traded below the 0.7100 level.

Support levels: 0.7090 0.7055 0.7020

Resistance levels: 0.7150 0.7200 0.7245

View Live Chart for the AUD/USD

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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