FxWirePro: AUD/USD breaches 0.72 handle, ignores upbeat Australia jobs data

AUD/USD chart - Trading View 

AUD/USD breached the 0.72 handle to refresh 9-month lows at 0.7197, outlook bearish.

The Aussie has largely brushed aside an upbeat Australia jobs data and remains depressed amid falling commodity prices and stronger dollar.

Thursday's report from the Australian Bureau of Statistics (ABS) showed the jobless rate slid to 4.6% in July, better than analysts' expectations at 5.0%.

Details of the report showed employment rose 2,200 in July, again confounding forecasts for a fall of 46,200.

Australia's unemployment rate dived unexpectedly in July to a 12-year low, but failed to impress bulls.

The drop was largely attributed to people falling out of the labour force as coronavirus lockdowns limited their ability to look for work.

"The fall in the national unemployment rate in July should not necessarily be viewed as a sign of strengthening in the labour market," cautioned Bjorn Jarvis, head of labour statistics at the ABS.

Analysts expect the true hit to jobs and unemployment would become more apparent in August and September data.

Australia's economy is widely expected to contract sharply this quarter and will be a test for the Reserve Bank of Australia's (RBA) confidence that the labour market will spring back quickly once restrictions ease.

AUD/USD slipped below 200-week MA and bearish momentum is likely to drive price lower. Scope for test of 38.2% Fib at 0.7051.

21-EMA is strong resistance at 0.7340. Bearish invalidation only above daily cloud.