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Weak Jobs Data
AUDUSD has come under fresh selling pressure today on the back of the latest Aussie employment data released overnight. The unemployment rate was seen moving up to 3.7% from 3.5% prior, above the 3.6% the market was looking for. Additionally, the employment chance number was seen recording the loss of 15k jobs, a sharp contrast from the prior month’s 32k increase.
RBA Concerned Over Economic Risks
The data comes shortly after the RBA recently warned of downside risks to the domestic economy. The bank opted to keep rates on hold this month, citing growing downside risks as a result of elevated inflation and tighter financial conditions. The RBA was concerned over the financial burden weighing on domestic households and the likelihood of this worsening through year end.
CPI Still Key
This latest set of employment figures will no doubt heighten these concerns, pushing back against any expectations of a further near-term hike from the RBA, which should keep AUD pressured going forward. The caveat to this is inflation, however. If we see any fresh uptick in inflation this will no doubt force the RBA’s hand. As such, incoming data will be closely watched ahead of the next meeting.
Technical Views
AUDUSD
The sell off in the Aussie has seen the market breaking down below several key levels. Most recently, the pair has traded below the .6520 level. While below here, and with momentum studies bearish, the focus is on a further push lower with .6275 the next support level to note.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.