Menu

Search

  |   Technicals

Menu

  |   Technicals

Search

FxWirePro: AUD/USD extends weakness, rise in unemployment boosts expectations of an RBA rate cut in June

AUD/USD chart - Trading View 

  • AUD/USD drops below 0.69 handle after Australia employment data disappoints.
     
  • The pair hit fresh 4-month lows at 0.6892 before paring some losses to trade at 0.6911 at 03:40 GMT.
     
  • The Aussie unemployment rate ticked higher to 5.2%, beating the 5.1% expected, while full-time jobs dropped in April.
     
  • A bigger-than-expected jump in Australia's unemployment rate boosted expectations of an RBA rate cut in June.
     
  • Focus now on the speech by the Reserve Bank of Australia’s (RBA) Assistant Governor Michele Bullock.
     
  • Technical studies are also biased lower for the pair. AUD/USD to see further weakness.
     
  • The major finds immediate support at 0.6890 (falling trendline). Break below eyes 0.6862 (78.6% Fib).
     
  • 5-DMA (trending sharply lower) is immediate resistance at 0.6945. Break above to see minor upside.

Support levels - 0.6890 (trendline), 0.6862 (78.6% Fib), 0.68 (88.6% Fib)

Resistance levels - 0.6945 (5-DMA), 0.7008 (21-EMA), 0.7062 (55-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-extends-weakness-in-response-to-dismal-China-data-dump-eyes-06890-1536816) is progressing well.

Recommendation: Hold for targets.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 
 

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.