Australian employment data was somewhat confusing – with a rise in the unemployment rate but a nice gain in jobs. After the blow AUD/USD got from the Fed decision, together with other currencies, it managed to consolidate. Update.
The Australian unemployment rate unexpectedly rose from the low level of 5.1% back to 5.3%. Australia’s rate is still one of lowest in the West. It stood on 5.1% in the past two months, and in the previous two months it was at 5.4%. There were also good news:
Australian Unemployment Change showed a gain of 23,500 jobs, slightly higher than 20,100 that was expected. All in all, the situation in Australia continues to be good.
Together with the job market’s pause in rises, the Aussie paused its retreats. AUD/USD, together with other “risk†currencies such as the Euro, lost a lot of ground after the markets digested the Fed decision.
AUD/USD already lost the 0.9135 support line before the Fed decision. On Wednesday, “the day afterâ€, it dropped from 0.9117 to 0.8968, almost 150 pips in one day, after already dipping to 0.8932.
The 0.90 support line was lost on the way. The initial reaction to the employment figures was bad, with an immediate fall to 0.8918, but the Aussie was quick to recover and consolidate just under 0.90, which now serves as a resistance line.
If the dollar storms continues, the pair will meet the 0.8870 support line, which worked as a resistance line a few weeks ago. It’s followed by minor support at 0.88 and then by the 0.8735 line, which a swing low in December 2009.
On the upside, 0.90 now works as resistance, followed by 0.9135 which also changed its role. The resistance line of 0.9220, that capped the pair just last week, will probably remain in the distance.
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