The AUDUSD pair has continued its rebound to approximately 0.6640 following the release of positive employment statistics by the Australian Bureau of Statistics. The Australian economy added 64.6K new jobs in February, above the consensus of 48.5K. The Australian economy recorded 11.5K layoffs in January. The unemployment rate has been reduced to 3.5% and 3.7% previously released.
RBA Lowe Lowe may continue to pursue higher rates as a larger labor force in activity would result in greater inflation.
Positive Australian labor market statistics complicate matters for the Reserve Bank of Australia (RBA), which is developing a strategy to reduce inflation. RBA Governor Philip Lowe may continue to seek higher rates as a larger labor force would result in increased inflationary pressures.
Previously, Australian Consumer Inflation Expectations (Mar) data showed Inflation forecasts for the next 12 months fell to 5.0%, down from 5.4% in the previous edition and the consensus of 5.4%.
AUDUSD Technical Outlook
The AUDUSD is maintaining its recent gains below 0.6650, supported by better-than-expected Australian job statistics. Good Australian job figures boosted betting for a 25-basis point RBA rate rise in April. Nevertheless, the US Dollar’s rally is receding as market sentiment improves. The AUDUSD is rising ahead of the Asian session after hitting a low of 0.6588.
The pair appears weak, with risks leaning to the negative. The daily chart reveals two major upward barriers: 0.6700 and 0.6765. (100- and 200-day Simple Moving Averages).
A break above 0.6765 would shift the present bearish outlook. On the downside, a support zone between 0.6560 and 0.6580 is essential, as a break below would almost certainly result in a move towards 0.6530.The price is trending lower on the 4-hour chart.
Support levels: 0.6580 0.6530 0.6500
Resistance levels: 0.6635 0.6695 0.6720
