AUD/USD – Back In Black After Strong Employment, RBNZ

AUD/USD – Back In Black After Strong Employment, RBNZ

Australian dollar has strengthened significantly after the latest employment figures were released this morning. The unemployment rate remained stable at 6.0%, but the employment change was extremely encouraging, from 47.3K + M / M versus an expected 15.0K. The figure is even more impressive when you look behind the title number, which is broken down into full-time who won 80.5K. part-time employment decreased by 33.3K but it's not really a huge problem because it is clear that the unemployment rate steady this decline is due to part-time being upgraded to full-time positions. Whichever way you want to cut, it is clear that the figures are extremely positive and a good sign for economic recovery in Australia.

Time Table

timing of employment data was also impeccable. Earlier we had the RBNZ rate decision in which the NZ Central Bank raised the rate by 25 basis points. As such, the market was already leaning toward the hawkish camp, and certainly strong employment figures fueled belief that RBA refrain from rate cut in the near future, facilitating strong bullish reaction which recovered all losses of the week and put AUD / USD in the dark.

There was a bearish downturn during late Asian after noon, but prices remained above 004 resistance turned support, with prices now pushing up towards 0.07 resistance again . Whereas the price actually rose continuously in the few hours after the announcement of employment, it is clear that the bullish momentum is not a flash in the pan. As such, we should be able to expect prices to remain high in the meantime and maybe even break 0,07 seek greater heights so broad risk appetite turn bullish again.

Table Daily

Daily Chart is less optimistic, however. Today's rally is still in the consolidation area saw in February, and the long-term trend is still firmly bearish. Without breaking 0,07 and preferably above 0.915, it is difficult to see current rebound as anything other than corrective. Similarly, although the Stochastic curve is currently pointing higher and crossed the signal line, the threat of a down cycle remains. Add to that the weak fundamentals of the Australian economy and decreasing manufacturing operations seen in China, the outlook for AUD / USD remains weak and bulls will still need to do more to prove that a strong uptrend sustainable is at stake

links:
Gold Technicals - No Bulls stopped 6 high Month achieved
WTI Crude - Inventory huge jump on again Fears SURPLUS
NZD / USD - bullish Breakout. above 0.8525 Post RBNZ rate rise seen

This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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