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  • Australia jobless rate dropped to 5.3 percent in July, pushing the AUD higher across the board.
  • AUD/USD is attempting a break above the 5-day MA of 0.7262.

The bid tone around the AUD strengthened, lifting the AUD/USD to a session high of 0.7267 after the Australian Bureau of Statistics reported a drop in the jobless rate.

The Aussie unemployment rate fell to 5.3 percent in July as opposed to the expected print of 5.4 percent. The data also showed the economy shed 3.9K jobs in July missing the estimated figure of 15K. The full-time job growth also dropped to 19.3K compared to 41.2K seen in July.

However, as of writing, the investors are cheering the drop in the jobless rate and are turning a blind eye towards the dismal job creation figures.

 At press time, the AUD/USD is trading at 0.7257. A close today above 0.7248 (previous day’s doji candle high) would validate the yesterday’s doji candle and confirm a short-term bearish-to-bullish trend change.

AUD/USD Technical Levels

Resistance: 0.7283 (Aug. 14 high), 0.7310 (July 2 low), 0.7329 (10-day moving average)

Support: 0.72 (psychological level), 0.7184 (61.8 percent Fibonacci retracement of 2001 low – 2011 high), 0.7160 (December 2016 low)