Despite unexciting job figures from Australia, the Aussie held the higher range it broke to earlier this week. The strength continues. Here’s an update on AUD/USD.
Only 200 jobs were gained in Australia in the month of February. This fell short of expectations that stood on 15,700 jobs. Australia’s Unemployment Rate remained unchanged at 5.3%, exactly as expected.
Aussie traders got used to positive surprises: in the past four months – the gain in jobs exceeded expectations each time, and the unemployment rate never disappointed and was usually better than expected. So this breather is a relative disappointment.
The initial reaction was a lower Aussie: AUD/USD dropped towards 0.91, just above the 0.9090 support line. Earlier this week, AUD/USD finally broke above 0.9090, a long standing resistance line.
The strength of the Aussie kept it from falling back down. The recovery was quick, and withing hours, AUD/USD returned to 0.9160, close to the 0.9170 resistance line. The Aussie breached this line for a short while yesterday reaching 0.9193, but this happened for a vey short time.
If AUD/USD provides a convincing breach of this level, 0.9170, the next hurdle is a big one – 0.9327. This line sent the Aussie down many times in the past, and is a very strong resistance line.
Looking down below 0.9090, the important line is 0.8850. Only risk aversive trading can send the Aussie back down there. The trend is optimistic at the moment, so the high yielding, “risky” currencies such as the Aussie have room for more gains.
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