AUD/USD sees the glass half empty of employment data

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Australia’s employment data for June was mixed: the land down under saw an increase of 15.9K jobs, slightly better than 12K expected and better than May’s drop of over 5.1K jobs. On the other hand, the unemployment rate surprised with a rise to 6%. In addition, May’s rate was revised up from 5.8% to 6%.

AUD/USD spiked higher but that turned sour quite quickly and the pair is now clinging to support.

The devil may be in the details: full time employment dropped by nearly 4K while the rise is due to a gain in part time employment of nearly 20K. Less full time jobs and more part time ones is not a positive sign for the economy. However, the rise of the participation rate from 64.6% to 64.7% is good news. The participation rate in the US stands at 62.8%.

To be fair, the Aussie was also hit by a smaller than expected trade balance surplus by Australia’s No. 1 trade partner, China.

AUD/USD

AUDUSD July 10 2014 technical analysis fundamental outlook Australian dollar trading

The Aussie was trading above the 0.94 “magnet” level. After a spike to high ground (probably on the headline gain in jobs) all the way to 0.9457, the pair dropped 100 pips and is now clinging to support at 0.9360.

Further support is at the round number of 0.93, followed by 0.9220. Resistance remains at 0.94.

For more, see the AUDUSD forecast.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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