Aussie Dragged by Downbeat Jobs Report
Ming Lam June 18, 2020 1:22 PM
Obviously, the impacts of the coronavirus pandemic are still lingering, and the Australian dollar should find it difficult to strengthen against the greenback...
This morning, the Australian dollar weakened against the U.S. dollar following a downbeat jobs report.
Official data showed that Employment in Australia plunged 227,700 in May, much worse than a reduction of 78,800 expected. The Jobless Rate jumped to 7.1% (6.9% expected) from 6.4% in April.
Source: Trading Economics
Obviously, the impacts of the coronavirus pandemic are still lingering.
In fact, market sentiment is seeing renewed drag caused by worries over a second-wave coronavirus pandemic. Authorities of Chinese capital city Beijing ordered the lockdown of residential communities following surging infections. In the U.S., the number of coronavirus cases in Arizona, Florida and Texas reached new highs.
Meanwhile, Qantas Airways, Australia's flag carrier, has canceled all international flights until late October. The decision came after Australian Tourism Minister Simon Birmingham said the country's border for overseas travel would only reopen next year.
The Australian dollar should find it difficult to strengthen against the greenback.
On an Intraday 30-minute Chart, AUD/USD is testing the Immediate support at 0.6835.
Source: GAIN Capital, TradingView
A Key Resistance has been located at 0.6890 (around the 50-period moving average).
The 20-period moving average has just crossed below the 50-period one, helping to keep the intraday bias as bearish.
A break below the immediate support at 0.6835 would open a path toward the next line of support at 0.6795.
Alternatively, a return to the key resistance at 0.6890 would trigger a further advance toward 0.6915 on the upside (around the high of yesterday).
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.