AUD/USD analysis: get ready for Australian employment data

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

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 securities. 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 Forex 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.