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AUDUSD retreats back to near previous session lows of 0.6630 after the release of weak jobs reports. While despite the disappointing jobs data the overall lower volatility suggests downside appears limited as risk appetite improves and support-based buying could again emerge at lower levels.
The Australian employment report showed that the number of officially unemployed people rose in April, by 18,000, and the unemployment rate rose to 3.7%, higher than the anticipated 3.5%. The Reserve Bank of Australia (RBA) already closely monitoring the economic data for the next move in its official cash rate. The central bank has lifted its cash rate target from 3.6 to 3.85 per cent, marking the 11th increase in the space of a year.
AUDUSD, short-term and long-term technical outlook
Technically the current price action signals suggest that a short-term bearish trend remains intact. The below chart reveals a few key levels which act as the areas of supply and demand. On the downside, 0.6628 is the immediate support level, followed by 0.6595. If the pair breaks below 0.6595, the slump will quickly extend toward the key demand area of 0.6565/60. On the upper side, the currency pair is likely to find immediate resistance at 0.6680 and then 0.6710, any break above the 0.6710 level could lead the prices of the Aussie towards the next resistance level of 0.6770 and 0.6800.
In the long term, watch for the weekly close below 0.6560 or above 0.6820, which will give a larger confirmation of direction in the long term.
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