AUD/USD rallies on positive Aussie jobs data, despite the headline miss
- AUD/USD mixed but turns bid on a positive jobs report.
- AUD/USD moves away from the danger zone and the major uptrend line extending back to the 0.7150-area lows of last December.
Australia employment rate drops to 5.4% in October, job growth slows
AUD/USD stabilised after the wage data disappointment yesterday, but could not recover losses overnight and posted a fresh five-month low down at 0.7573. However, AUD/USD has been mixed with the outcome of Aussie jobs data that showed that the employment change arrived at +3.7K as a miss compared to the expected +18.8K. Currently, AUD/USD is trading at 0.7601, up 0.16% on the day, having posted a daily high at 0.7611 and low at 0.7569.
AUD/USD bulls take charge on details of the jobs report
There was an initial dip in the Aussie down to 0.7562 on that headline, but behind that, the unemployment rate at 5.4% was a beat vs the expected 5.5% and prior 5.5%, making for the lowest since February of 2013. Also, the full-time employment change arriving at +24.3K was a very good result, beating the prior +6.1K while part-time employment change was at -20.7K
Valeria Bednarik, chief analyst at FXStreet explained, that technically, the 4 hours chart shows that the price is well below a bearish 20 SMA, while technical indicators remain steady ear oversold readings, with the RSI indicator heading marginally lower around 34, leaning the scale towards the downside.
Meanwhile, James Chen, at Forex.com, noted that the currency pair went on to break below 0.7600-area support and has currently reached down to a major uptrend line extending back to the 0.7150-area lows of last December. "With any sustained breakdown below this support trend line, the next immediate downside target on further AUD/USD weakness is around the critical 0.7500 support area. On any extended break below 0.7500, the next major downside target resides around key 0.7300 support."