AUD/USD analysis: get ready for Australian employment data

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7915

AUD/USD can reach 0.8000 on positive employment figures.
Australia to release also Consumer Inflation Expectations for February.

The Australian dollar's recovery was quite impressive post-US inflation, as the AUD/USD pair recovered from a daily low of 0.7772 to break above the 0.7900 level in the American afternoon, surpassing its previous weekly high. There were no news coming from Australia this Wednesday, with the pair following equities and commodities lead. However, things will turn more interesting this Thursday, as the country is set to release its monthly employment report, alongside with Consumer Inflation Expectations for February. Inflation was latest seen at 3.7%. As for the employment report, the economy is expected to have added 15.0K new jobs after adding 34.7K in the previous month. The unemployment rate is expected to remain unchanged at 5.5%, despite the participation rate is seen retreating to 65.6& from previous 65.7%. Solid employment figures should back Aussie gains beyond the 0.7900 figure. The advance could be exacerbated by a Chinese holiday, as the country begins its New Year celebrations.

Technically, the pair is hovering around the 38.2% retracement of its December/January rally, where in the 4 hours chart, the pair also has its 200 EMA. Not yet clearly breaking the level, the ongoing strength favors additional gains ahead, moreover considering that the RSI indicator is gaining upward strength around 62. The Momentum indicator also advanced with the latest spike, further backing the case of an upward continuation. The immediate resistance comes at 0.7920, with a positive employment report probably boosting the pair toward the 0.8000 threshold.

Support levels: 0.7870 0.7825 0.7790

Resistance levels: 0.7920 0.7960 0.8000

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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