AUD/USD garners support on strong jobs again

By FXStreet FXStreet (Guatemala) – AUD/USD was back below the 0.70 prior to the key jobs data and Chinese CPI/PPI data in risk-off and sensitive markets, but now trades higher on the back of China CPI Y/Y 2.0% vs 1.8%, 0.5% M/M vs 0.4% exp and better than expected jobs report from Australia.

The Australian employment change was a much higher reading of 17.4k vs 5.0k expected, but lower than last months. The unemployment rate came in as expected at 6.2% beating last months of 6.3% but there had been sentiment that this was going to be a poor result, so it was a relief for the Aussie. At the same time of the releases, the Shanghai Composite opened lower 1.9% while the Hang Seng -2.2% and Nikkei 225 was – 3.7% for the session so far.

AUD/USD rallied to 0.6986 on the release and has maintained a bid tone at time of writing. In the build-up to the key data release for the Australian and Chinese economy, the Aussie was better offered on Wall Street and dropped through the 200 SMA at 0.7020 on the hourly sticks. AUD/USD then dropped like a stone through the key 0.70 handle and …read more

Source:: FX Street