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FxWirepro: AUD/USD spike on stellar Australian Oct jobs likely to be temporary, good to sell rallies

Aussie bouyed across the board after stellar Australia employment figures for the month of October set aside any chances of a rate cut from RBA for now. Data took markets by surprise, AUD crosses at new highs post data: AUD/USD - 0.7154, AUD/JPY - 87.95, AUD/NZD - 1.0893.

  • Improvement was seen in every single measure,  employment jobs changed by 58.6k (seasonally adjusted), full-time jobs came in at 40k vs -10.4k last, while part-time saw a jump of 18.6k. Australian unemployment rate ticked down to 5.9% vs 6.2% expected and 6.2% last, with the participation rate at 65% vs 64.9% expected and 64.9% last.
  • While more upside in AUD/USD cannot be ruled out, the rise is likely to be temporary, because the surrounding structural conditions remain unchanged. It is to be noted that market has now turned more bullish the USD following the upbeat US NFP last Friday. Going forward, the broad trend still favours the greenback with expectations for a hike in U.S. interest rates next month. 
     
  • AUD/USD is currently trading at 0.7136, paring some gains from session highs at 0.7154. Immediate resistance for the pair is seen at 0.7153 (20 DMA), while support is located at  0.7120 (Daily Tenkan). We would recommend selling rallies around 0.7150/70, SL: 0.7200, TP: 0.7020

RES: 

R1: 0.7153 (20 DMA)
R2: 0.7173 (Cloud base)
R3: 0.7199 (Daily Kijun)

SUP:

S1: 0.7120 (Daily Tenkan)
S2: 0.7106 (10 DMA)
S3: 0.7089 (Cloud top)

  • Market Data
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