Technical Bias: Bearish
- Aussie Dollar was crushed against a basket of currencies, as the employment report published during the Asian session missed the mark.
- Employment Change released by the Australian Bureau of Statistics came in at 38.5K, more than the market expected in July 2015.
- The disappointing part was the fact that the Unemployment Rate increased to 6.3%.
The AUDUSD spiked down after the employment report was published during the Asian session. The pair traded lower, but managed to find support near the 100 and 200 hourly simple moving averages confluence area. Moreover, there is also a descending channel formed on the hourly chart, which is aligned with the stated confluence area.
However, there is a lot of bearish pressure on the pair, which could easily result in a break lower. If the pair closes below the channel support area more losses are likely.
On the upside, the channel resistance area is a solid resistance, as the 50 hourly SMA is also positioned around it.
Australian Employment Change
Earlier today, Australia saw a monster release, as the Employment Change, measuring the change in the number of employed people in Australia was published by the Australian Bureau of Statistics. The forecast was lined up for a rise of 15.0K in July 2015. However, the result was above the forecast, as the Employment Change posted an increase of 38.5K. However, it was offset by the Australian Unemployment Rate, as it ticked higher from the previously revised rate of 6.1% to 6.3%.
The report stated that the “Unemployment increased 40,100 to 800,700. The number of unemployed persons looking for full-time work increased 23,600 to 568,100 and the number of unemployed persons only looking for part-time work increased 16,500 to 232,600”.
The AUDUSD pair dived, and was under selling pressure after the release. There was a nasty spike noted, and there are enough signs that the pair might continue to head lower.
Selling rallies closer to the channel resistance area is a good option.