Important job figures showed another improvement in Australian employment. This pushed the recovering AUD/USD above technical barriers on its way up. Update on this strong currency.
Australian employment change showed a gain of 45,900 jobs in June. This was triple the early expectations that stood on a modest gain of 15,000. It’s important to note that last month’s figure was revised to the downside – from 26,900 to 22,800, but this doesn’t undermine the great gain in jobs. Also the complementary figure was excellent:
The Australian unemployment rate fell once again – to 5.1%. This is the lowest level since January 2009 and shows that the economy is very strong, despite the rate hikes.
This continues a trend of positive surprises and especially drops in the unemployment rate seen in previous months. Last month’s job data followed the exact same path.
AUD/USD reacted with a big rise. It leaped from 0.8660 to 0.8740 and peaked at 0.8760 later on – a safe distance from the resistance line of 0.88.
The pair already had a good week with a gradual rise from 0.8430. The first point of struggle was the strong pivotal line of 0.8567 which served as a strong support and resistance line in the past. After it crossed this important line, it continued upwards and managed to pass the 0.8735 line (December’s low) just before the job figures were released.
Above 0.88, the next line of resistance is the round number of 0.90, followed by 0.9135, but 0.88 is a strong barrier for now.
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