AUD/USD Forecast: Australian employment data could lift aussie only temporarily

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7621

Australia will publish May employment figures early on Thursday.
The American dollar soared after an optimistic US Federal Reserve.
AUD/USD is technically bearish and could retest the year’s low at 0.7531.

The AUD/USD pair traded as low as 0.7608, a level that was last seen in mid-April. Demand for the American currency coupled with the poor performance of equities, after the US Central Bank announced its latest decision on monetary policy. US policymakers were much more optimistic than in their previous meeting and upgraded economic forecasts and chances of a sooner rate hike in the country.

Australia will report May employment figures this Thursday. The country is expected to have added 30,000 new jobs in the month after losing 30.6K in the previous month. The Unemployment Rate is foreseen steady at 5.5%, while the Participation Rate is seen ticking up to 66.1% from 66% in the previous month. Also, RBA’s Governor Philip is due to deliver a speech titled "From Recovery to Expansion."

AUD/USD short-term technical outlook

From a technical point of view, the AUD/USD pair is bearish and could extend its slide toward 0.7531, this year low. The 4-hour chart shows that the pair stands below all of its moving averages, as technical indicators maintain their bearish slopes within oversold readings. The pair could bounce on upbeat Australian employment data, but after the dust settles, it could resume its slide.

Support levels: 0.7605 0.7575 0.7530

Resistance levels: 0.7640 0.7680 0.7710

View Live Chart for the AUD/USD

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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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