AUDUSD Trades at Critical Support Ahead of Jobs Data

ASX 200
ASX 200

AUDUSD is down by over 1.70% in today’s trading. The currency pair has dropped roughly 160 pips from its Asian session highs to 0.6282. As of this writing, it is trading at 0.6334 ahead of Australia’s March labor figures.

Due to be released at 2:30 am GMT, the Australian Bureau of Statistics is expected to report that 33,000 jobs were lost last month. Consequently, the job losses are expected to result in an uptick in the unemployment rate from 5.1% in February to 5.4% in March. This data would reflect the implications of the coronavirus pandemic to the Australian economy. If the jobs reports from the US and Canada were any indication, it would seem wise for us to brace for a surprise.

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AUDUSD Outlook

On the daily time frame, it can be seen that AUDUSD is trading around resistance at the falling trend line (from connecting the highs of December 31 and March 9). If today’s candle closes at its current levels, a bearish engulfing candlestick pattern would be completed. This would suggest that sellers will soon push price lower. A disappointing report, like the ones from the US and Canada, could trigger a sell-off on AUDUSD. Near-term support for the currency pair would be at its April 6 lows at 0.5985.

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On the other hand, a better-than-expected jobs report could help AUDUSD maintain its recent uptrend. On the 4-hour time frame, it can be seen that the currency pair is testing support at the rising trend line (from connecting the lows of March 19 and April 3) and the 38.2% Fib level (drawing from the low of April 3 to today’s highs.More content