AUD/USD Match Towards 0.7800 Gains Steam – Here’s Why

The AUD/USD is holding steady after the relatively strong economic data from Australia. The AUDUSD is trading at 0.7773, which is slightly higher than this week’s low of 0.7657. 

What happened: The AUD/USD is reacting to the strong employment numbers that were released earlier today. The data showed that the Australian unemployment rate declined from 6.8% in November to 6.6% in November. This was a relatively stronger reading than the 6.7% that analysts were expecting. 

The Australian participation rate rose from 66.1% to 66.2% while the economy added 50,000 new jobs. These numbers, coupled with the overall strength of the Chinese economy, provide strong optimism that the Australian economy will recover faster than estimates. Looking ahead, the AUD/USD will react to the Australian retail sales numbers that are scheduled for tomorrow.

AUD/USD technical outlook

Turning to the four-hour chart, we see that the AUD/USD has formed an ascending channel that’s shown in black. The pair has also moved above the 15-day and 25-day weighted moving averages while the Relative Strength Index (RSI) has continued rising. Therefore, the pair will likely continue rising as bulls target the upper side of the channel at 0.7800. However, this trend will be invalidated if the price falls below 0.7657, which is this week’s low.

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AUD/USD technical chart


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