Forex News: AUD/USD Loses Bullish Stance after Release of Employment data

Jul 13 • Market Analysis • 1399 Views • Comments Off on Forex News: AUD/USD Loses Bullish Stance after Release of Employment data

Forex News: With the release of employment data and with the impacts of the implications of the minutes of the FOMC meeting, the price action has become bearish for AUD/USD. The employment data is far from being impressive with a -27,000 or a total loss of 27 thousand slots in the job economy. This is quite incomparable with the almost insignificant gain totaled at 200 jobs. This trend is coming from a positive May employment data of 27,800 jobs, which was also revised from a more impressive 38,900 jobs.

This has been in opposition to the previous trend that occurred for the currency pair. For quite some time, the AUD/USD currency pair has been riding on a constant bullish stance almost taking new record highs for every trading session. This is reflected in the 1H charts. Prices were at the satisfactory level before July 11 with prices at or about the 1.0280 level.

After the release of the news on the employment data, the impact has been apparent. The AUD/USD market fell at about 40 pips within a short period, 15 minutes to be exact. Since June, a rising trend has been observed in the trading market of the currency pair. With the loss documented after the press release on the employment data, the rising trend or the bullish momentum was lost.

Within the 4H chart, it should be pointed out that the RSI value is held lower than 60. This indicates that the bullish trend is not entirely lost and the market is far from taking on a bearish trend. Instead, one can conclude that at this RSI value, the market is still at the consolidation stage. The AUD/USD has a support region below the 1.0125 to 1.050 values that oppose the bearish trend every time the market pushes lower than the prevailing trend.

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For this week, the most anticipated episodes in the world economic calendar is the announcement of data on unemployment in Australia because of its usual impact to the prevailing economic trends. Though the unemployment data is not as crucial or as volatile as the NFP, the numbers are still seen as something truly substantial and significant to every trader. Also, the economic policy makers consider this data important in drafting policy decisions in the future. The latest records show that the rate of unemployment in Australia is at 5.2 percent, which is a direct result of the zero net job creation.

On top of the unemployment concerns, other economic issues are being faced by Australia. One of these is Australia’s standard interest rates. The central monetary board of Australia sets this benchmark value and this is powerful enough to propel or impair the overall pace of the Australian economy. Throughout the year, Australia’s central bank has taken measure for expansion to accommodate more investors by lowering the interest level to 3.5 percent. Another round of interest rate decrease is still expected if the unemployment rate continues to increase in the next few months.

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