“¢ An unexpected drop in Aussie unemployment rates provides a minor lift.
“¢ News of US-China trade talks/rebounding copper prices remain supportive.
The AUD/USD pair consolidated its Aussie jobs data-led strong up-move and is currently placed at the top end of its daily trading range.
After an initial dip to 0.7215 area, the pair caught some strong bids and rallied over 60-pips after the Australian Bureau of Statistics reported an unexpected fall in the unemployment rate to 5.3% in July as against market expectations for a steady print of 5.4%.
This coupled with an addition of more than 19,000 full-time jobs helped offset other disappointing details, showing that the number of employed people decreased by around 4,000 in July and assisted the pair to build on previous session’s modest rebound from 20-month lows.
Bulls, however, failed to capitalize on the early uptick and also seemed rather unimpressed by the ongoing US Dollar profit-taking slide. Even news of renewed US-China trade talks and a modest rebound in copper prices also did little to provide any fresh bullish impetus to the China-proxy/commodity-linked Australian Dollar.
It would now be interesting to see if the pair is able to attract any follow-through buying interest or the current bounce turns out to be a dead-cat bounce from near-term oversold conditions.
Technical levels to watch
A follow-through up-move beyond 0.7280-85 zone, leading to a subsequent break through the 0.7300 handle, might trigger a short-covering bounce towards 0.7330-40 support turned resistance. On the flip side, the 0.7215-10 area remained an immediate support to defend, which if broken might turn the pair vulnerable to aim towards testing its next major support near the 0.7165-60 region.
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