GrowthAces.com trading position on the AUD/USD: stand on the sidelines, mixed outlook.
- Australian employment surged by 121k in August, the biggest rise in at least three decades and far beyond forecasts. The unemployment rate fell to 6.1%, beating forecasts of 6.3%.
- Most of the gains came in part-time jobs which surged 106.7k, while more people went looking for work as the participation rate jumped to a 16-month peak of 65.2%.
- The Reserve Bank of Australia is aware of the volatility in the data and would want to see a consistent run of better jobs numbers before concluding that the labour market had really turned the corner. The RBA Governor Glenn Stevens recently argued that cutting rates further to try to lower unemployment would not be sensible as it would also add fuel to an already hot housing market.
- Leading indicators of labour demand have also been pointing to a pick up, with ANZ's survey of job advertisements rising for a third straight month in August.
- The AUD hit a five-month low of 0.9113 on Wednesday and jumped as far as 0.9218 after the release. The AUD/USD fell during European session by nearly a cent from the levels post jobs data. The level of 0.9155 is now the nearest resistance level. GrowthAces.com stands on the sidelines on the AUD/USD now.
Significant technical analysis' levels:
Resistance: 0.9218 (low Sep 10), 0.9288 (high Sep 9), 0.9338 (50-dma)
Support: 0.9183 (200-dma), 0.9113 (low Sep 10), 0.9048 (low Mar 24)