AUD/USD Swings to Downside on 600K Job Losses
Ming Lam May 14, 2020 4:02 AM
And in face of a strengthening U.S. dollar, the Australian dollar has given up most gains made in last week's rebound...
Australia's official data showed that the economy shed 594,300 jobs in April (-575,000 expected) and the jobless rate rose to 6.2% (8.2% expected) from 5.2% in March.
And the underemployment rate surged to a record high of 13.7%.
The coronavirus pandemic has hit the Australian economy hard. Big employers, particularly those in tourism, airlines and department stores, have to furloughed tens of thousands of workers.
On top of these, in face of a strengthening U.S. dollar, the Australian dollar has given up most gains made in last week's rebound.
On an Intraday 30-minute Chart, AUD/USD has swung down to the Lower Bollinger Band, keeping the intraday bias as bearish.
Source: GAIN Capital, TradingView
Key Resistance is located at 0.6465 (around the 50-period moving average and the Upper Bollinger Band).
Unless this level is surpassed, AUD/USD is expected to seek immediate support at 0.6410 (a key support level seen in May 5-6).
In case it slips below 0.6410, the next support level at 0.6375 (around the low of May 7) would come into sight.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.