Australian Dollar gains on solid jobs report

On Thursday’s Asian morning, the Australian labour market report came out impressively strong for June. The report indicated that 50.9 K jobs were created in June, the largest number since past November but also a figure 3 times larger than expected (17 k) .However, unemployment remained constant at 5.4%. Comments made by officials after the release indicated that with the labour supply still growing, less upward pressure was applied on wages and inflation so RBA is not expected to rate hike anytime soon.

AUD/USD advanced upon the release of the news and landed above our 0.7400 support level. We support the opinion that the Aussie could continue to move in a sideways movement between the 0.7460 resistance level and the 0.7400 support level as this was mostly the case in July. In any case, should the pair come under buying interest we could see the pair breaking the 0.7460 resistance line continuing higher aiming for the 0.7515 resistance level. Should the bears dominate the pairs direction we could see it breaking the 0.7400 support line and aim for the 0.7355 support barrier.