The Australian dollar moved higher in Asia on Thursday, boosted by Australian jobs data and probed again above strong barriers at 0.7035/36 (daily cloud top/weekly cloud base).
Full-time employment data showed strong rise in June (21.1K vs 2.4K in May) but were overshadowed by unemployment that stays stuck at 5.2% and only 500 new jobs added in June, compared to 42.3K figure in May and 9.1K forecast.
The Reserve Bank of Australia is closely monitoring developments in the labor sector, with expectations for earnings and inflation to pick up, but fall in unemployment is needed to accelerate the process, as the central bank looks for jobless rate to drop to 4.5%.
Fresh advance emerged after two-day pullback from 0.7044 high was contained by psychological 0.70 support and Wednesday’s action ended in long-legged Doji, suggesting that bears ran out of steam.
Momentum and RSI are turning up on daily chart, helped by daily MA’s in bullish configuration and setting scene for eventual break through key barriers at 0.7035/36 and 0.7044/47 that would open way for test of pivotal Fibo barrier at 0.7062 (61.8% of 0.7205/0.6831) and 200DMA (0.7090) in extension).
Broken 100DMA now offers immediate support at 0.7017, guarding lower pivots at 0.7000/0.6990 (round-figure/converged 10/20DMA’s), loss of which would generate bearish signal.
Res: 0.7044, 0.7047, 0.7062, 0.7090
Sup: 0.7017, 0.7000, 0.6990, 0.6970
