AUD/USD Swings to Downside on 600K Job Losses

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.

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account