AUD/USD jumps to 0.72 as Aussie full-time jobs surged in August

The Aussie dollar is building on the technical recovery on the back of an upbeat Aussie labor market data.
The 10-year US-AU yield spread has not moved much after the release of the labor data, so bulls need to observe caution.

Omkar Godbole FXStreet Contributor

The technical recovery in the AUD/USD is gathering pace on the back of an upbeat Aussie labor data release.

At press time, the currency pair is trading at a session high of 0.72, having charted a bullish doji reversal yesterday. More importantly, the pair has added close to 30 pips in the last few minutes.

The Australian economy added 44,000 jobs, beating the estimate of 15,000 and up from the previous month's print of -3,900. Notably, the full-time jobs increased by 33,700, following an addition of 19,300 jobs in July. Meanwhile, the jobless rates remained unchanged at 5.3 percent as expected.

An above-forecast headline figure and the sharp rise in the full-time jobs is good news for the AUD. However, the response from the bond markets is muted at best. For instance, the spread between the US 10-year yield and the Aussie 10-year yield has dropped by just one basis point to 36 basis points (bps) after the release of the labor data. As a result, the AUD/USD may have a tough time holding on to a session high of 0.72.

AUD/USD Technical Levels

Resistance: 0.7202 (Aug. 15 low), 0.7238 (Aug. 24 low), 0.7256 (61.8% Fib R of 0.7362/0.7085)

Support: 0.7163 (10-day moving average), 0.7144 (Sep. 5 low), 0.7134 (5-day moving average)

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	Expanding
1H	Bullish	Overbought	Expanding
4H	Bearish	Overbought	Expanding
1D	Bullish	Neutral	High
1W	Bearish	Oversold	High
Updated Sep 13, 01:30 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Australia unemployment rate set to edge up within overall strong labor market

The Australian monthly employment report is scheduled for release on Thursday at 00:30 GMT, and market participants anticipate a modest increase in jobs in January. The Australian Bureau of Statistics is expected to announce that the country added 20K new jobs in the month, while the Unemployment Rate is forecast at 4.2%, up from the 4.1% posted in December.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.