AUDUSD trades higher for the second straight day following a short correction from the 15-month highs above the 0.72 mark. As I have mentioned in my previous AUDUSD analysis, the Bullish Bias In Tact Above 0.6980.
The July employment data for Australia released earlier today showed that employment rose by 114,700 in July, four times higher than expectations for a lift around 30k. Full-time jobs rose 43,500 and part-time positions increased 71,200. The unemployment rate climbed to 7.5% above 7.4% in June but below the forecast of a rise up to 7.8%. This is the highest unemployment rate in the 22 years—the participation rate increase to 64.7% in July from 64.1. RBA expects the unemployment rate to rise up to 10% later in the year after the new coronavirus lockdown in Victoria and then gradually return to 7%.
Meanwhile, the Australia New Home Sales increase to 170.6% from previous 87.2% Consumer Inflation Expectations registered in at 3.3% in August below forecasts of 3.4%.
The Aussie dollar managed to rally the last month after better than expected economic data from China that show some clear signs of faster than expected economic recovery. The primary beneficiary of a strong rebound in China is Australia, which is the leading trading partner.
AUDUSD Daily Technical Analysis
AUDUSD is 0.11% higher at 0.7170 as the pullbacks still attract buyers. The technical outlook is bullish, and higher levels might be on the cards.
Resistance for the pair stands at 0.7187 today’s high. More selling pressure would be met at 0.7198 the top from August 11. The recent highs at 0.7245 would provide the next supply zone.
On the downside, first support for AUDUSD is at 0.7156 the daily low. The low from yesterday’s trading session at 0.7112 would provide the next support area. A break below might push the pair down to 0.7011 the 50-day moving average.
On the upside, first resistance for the Dow index stands at 25,601 the high from yesterday. A move above 25,601 might open the way for a test of 25,027 the high from June 24. If the bulls continue then the next supply zone for the Dow Jones is at 26,274 the 200-day moving average.
On the flip side, immediate support for Dow Jones index is at 25,096 the low from yesterday. Next support for the Dow Jones will be met at 24,952 the 50-day moving average. A break below 24,952 might open the way for a test of 24,755 the 100-day moving average.
AUDUSD Daily Chart