Dismal Aussie jobs report may accentuate bearish technical setup in AUD/USD

  • Aussie full-time jobs growth slumped in May, the jobless rate ticked lower. 
  • Aussie dollar keeps losses, risks losing ground, courtesy of bull failure.

The Aussie dollar is already on the back foot, having failed to capitalize on the bullish breakout earlier this month and the dismal Aussie jobs report released a few minutes ago could only bolster the already bearish technical setup.

The AUD/USD pair hit a session low of 0.7558 after weak employment numbers hit the wires, and was last seen trading at 0.7565.

The Australian Bureau of Statistics (ABS) data released today showed the economy added 12K jobs in May, missing the estimated figure of 19K by a wide margin. Further, the full-time jobs fell by 20.6K, which is a big negative for the Aussie dollar.

However, the jobless rate ticked lower in May and that could have put a bid under the AUD/USD at 0.7558.

Nevertheless, the weak full-time job additions figure could accentuate the bearish technical setup in AUD/USD.

The currency pair had crossed the long run falling trendline (drawn from Jan. 26 high and April 19 high) in a convincing manner earlier this month, but quickly turned lower, trapping the bulls on the wrong side of the market.

AUD/USD Technical Levels

Resistance: 0.7624 (June 12 high), 0.7677 (June 6 high), 0.7707 (100-day MA)

Support: 0.7524 (flag support), 0.7476 (May 30 low), 0.7412 (May 9 low)

Daily chart

 

 

 

 

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