Technical Bias: Bullish
- AUDUSD surges 1.3% to 0.7778 following Australia jobs report.
- Aussie dollar supported despite signs of slowdown in China.
- Australia employment rises by 37,700 in March, unemployment falls to 6.1%.
The AUDUSD advanced on Thursday, building off the previous day’s highs following a stronger than expected Australian jobs report.
The AUDUSD surged 1.3 percent to 0.7778, building off Wednesday’s impressive rally that brought the pair closer to the 0.77 mark. The next resistance test for the AUDUSD is 0.7782. On the downside, initial support is likely found at 0.7601.
The US dollar was under pressure on Wednesday following dismal industrial production figures. The AUDUSD will continue to face price action in Thursday’s New York session as the US government is scheduled to release housing data and weekly jobless claims. Regional Federal Reserve Bank Presidents Dennis Lockhart (Atlanta) and Eric Rosengren (Boston) are also scheduled to speak.
In economic data, Australia’s employment picture brightened considerably in March, as employers added more jobs than forecast and the unemployment rate unexpectedly dropped. Employment in Australia rose by 37,700 in March, following a gain of 41,900 in February, the Australian Bureau of Statistics reported on Thursday. A median estimate of economists called for a gain of 15,000.
The gains were largely attributed to a surge in full-time work. The economy added 31,400 full-time jobs last month, official data showed. Meanwhile, part-time jobs increased by 6,200.
The unemployment rate declined unexpectedly, falling to 6.1 percent from 6.2 percent. A median estimate of economists called for a slight increase to 6.3 percent.
The AUDUSD has been resilient this week amid signs of economic slowdown in China. Australia’s biggest trade partner posted dismal trade numbers on Monday, which showed steep drop in exports last month. On Wednesday Beijing said gross domestic product expanded 7 percent annually in the first quarter, matching estimates but below the Q4 rate of 7.3 percent. Separately, the Chinese government reported a slowdown in retail sales and urban investment.