AUD relief rally
The Australian dollar rallies to the 0.72 handle, 0.35% after ABS reported the August employment report printed above all analysts’ expectations.
The Australian Bureau of Statistics (ABS) said employed increased by around 44,000 persons in August 2018 while the unemployment rate remained at 5.3%, a six- years low. Besides, the participation rate rose to 65.7.
• Employment increased 44,000 to 12,631,300
• The unemployment rate remained steady at 5.3%
• Participation rate increased by 0.2 pts to 65.7%
AUDUSD: Held weekly pivotal 0.7100-0.7080 so far
AUDUSD has closed above the previous day’s high for two days. The key resistance is placed between 0.7200-0.7210 above this 0.7240 its 20MA exists. The daily studies RSI is still below 50.00, and the oscillator just has been turned bullish. Under these conditions, a recovery back above 0.7200/0.7210 still seems possible.
The key support level is placed at 0.7160, 0.7130 and 0.7080.
Bulls perspective: A break above the resistance 0.7210 needed to initiate a strong recovery to 0.7240.
AUDNZD: Outlook remains favorable
The near-term price action may have contained within the 1.1020-1.0840 range unless a fresh catalyst emerges, most possible upside. The daily studies RSI is above 50.00, and the oscillator has been bullish. Under these conditions, the cross can be expected to break out above the resistance zone 1.0975-1.1020 before eyeing 1.1070 and 1.1100 its 80.0% fib reaction of 1.1175-1.0847 correction. Supports are at 1.0930, 1.0880 and 1.0840.
Flip side, a drag below 1.0840 could attract additional selling interest to 1.0800 levels.
Here’s more on AUDNZD bearish side
The strength of the Aussie dollar remains cast on the EM landscape.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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