AUD/USD slumps 30+ pips after Aussie jobs report

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  • AUD/USD flashes the fresh low since October 25.
  • Aussie employment change disappointed the buyers.
  • Trade difference between the US and China takes another turn.

Having witnessed a surprise drop in Australian Employment Change, AUD/USD nosedives to 0.6812 by the press time of early Thursday.

Australia’s October month employment report flashed downbeat signals with the headline Employment Change dropping to -19K from +15K expected. Additionally, the Unemployment Rate matched anticipated increase of 5.3% from 5.2% prior.

Recently released November month Consumer Inflation Expectations, from the Melbourne Institute, crossed 3.2% forecast and 3.6% prior to 4.0%. However, the data failed to have any major response ahead of the key jobs report.

Additionally, China’s Global Times’ report that the US provokes the dragon nation with Taiwan Straits transit and the Chinese President Xi Jinping’s latest indirect criticism to the US trade protectionism also dims the Aussie moves. Earlier, the Wall Street Journal (WSJ) released news that the trade talks between the United States (US) and China are hanged over the disagreement on China’s import of the US farm products.

Having witnessed the initial reaction to the Australian October month jobs report, investors will now focus on China’s October month Retail Sales and Industrial Production data. While the Retail Sales YoY is expected to recover from 7.8% to 7.9%, Industrial Production could weaken to 5.4% from 5.8% on a yearly basis.

It should, however, be noted, that any developments concerning the US-China trade deal will have a higher market reaction.

Technical Analysis

Unless providing a decisive break beyond either the 50-day Exponential Moving Average (EMA) level of 0.6833 or the 100-day EMA level of 0.6856, prices are less likely to register much momentum. In doing so, 0.6770 and 0.6900 will be the keys to watch.

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