AUDUSD Swings to Downside on 600K Job Losses

Australian flag
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.

Related tags: Forex

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