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AUD/USD pops and drops below 0.6450 amid mixed Aussie employment data

  • AUD/USD prints four-day losing streak after Australia’s April month jobs report.
  • US dollar struggles amid mixed sentiment concerning negative Fed rates.
  • US-China tension, risk of virus resurgence exert downside pressure on the pair.
  • US data, trade/virus updates will be the key to fresh impulse.

AUD/USD drops to 0.6435, after an initial spike to 0.6470, as Aussie employment figures flashed mixed signals on early Thursday. The pair also bears the burden of risk-off sentiment.

Australia’s April month Unemployment Rate bear 8.3% forecast to 6.2% whereas Employment Change came in weaker than -575K forecast to -594.3K.

Read More: Breaking: Australia April unemployment rate +6.2 pct, s/adj (Reuters poll: +8.3)

Earlier during the day, Australia’s Consumer Inflation Expectations for May slipped below 4.6% prior to 3.4%. Though the pair shrugged off the data as the US dollar consolidates the recent gains.

The greenback slipped after concerns renew for the Fed’s negative rates after US President Donald Trump and Treasury Secretary Steve Mnuchin spoke bearish.

Also likely to have limited the pair’s downside could be expectations of a rate cut from the People’s Bank of China (PBOC). Bloomberg signaled that the PBOC will announce another rate cut to its medium-term lending facility (MLF) to ward off the liquidity challenges.

Even so, the US-China trade/political tension, as well as the risk of the virus wave 2.0, seems to exert downside pressure on the pair.

As a result, the US 10-year Treasury yields remain pressured below 0.65% with Asian stocks flashing mild losses by the press time.

Moving on, the Aussie traders will keep eyes on the US-China and virus headlines for fresh impulse ahead of the weekly US Jobless Claims figures. The employment gauge is likely to soften from 3169K to 2500K during the week ended on May 08.

Technical analysis

100-day SMA, near 0.6525 now, followed by the monthly top close to 0.6560/65, keeps the pair’s short-term upside capped. On the contrary, a confluence of a three-week-old ascending trend line and 21-day SMA around 0.6420/25 keeps the short-term declines limited, a break of which can drag the quote to the previous week’s low surrounding 0.6370.

Additional important levels

Overview
Today last price0.6459
Today Daily Change4 pips
Today Daily Change %0.06%
Today daily open0.6455
 
Trends
Daily SMA200.6426
Daily SMA500.6279
Daily SMA1000.6527
Daily SMA2000.667
 
Levels
Previous Daily High0.6525
Previous Daily Low0.6438
Previous Weekly High0.6549
Previous Weekly Low0.6372
Previous Monthly High0.657
Previous Monthly Low0.598
Daily Fibonacci 38.2%0.6471
Daily Fibonacci 61.8%0.6492
Daily Pivot Point S10.642
Daily Pivot Point S20.6386
Daily Pivot Point S30.6334
Daily Pivot Point R10.6507
Daily Pivot Point R20.6559
Daily Pivot Point R30.6594

Author

Anil Panchal

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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