AUD/USD clings to 0.6930, all eyes on monthly employment report

  • Risk-off remains highlighted.
  • Australian jobs data to offer fresh impulse.

Aussie traders gave little importance to welcome CPI figures from its largest customer China amid global risk-off and a disappointment from confidence data at home. Further, nervousness remains present ahead of the key jobs data as the AUD/USD pair seesaws near 0.6930 during the early Asian session on Thursday.

Global risk tone remained heavy as investors worried about the Federal Reserve’s meeting next week while most of the central bankers, including the ECB, have been mostly dovish off-late.

Adding to the pessimism could be the US President Donald Trump’s tweets that have been challenging to announce fresh tariffs on China if no progress on trade deal happens at the G20.

The Australian Dollar (AUD) has been mostly considered as a risk barometer and declines in times of market uncertainty. Another such risk gauge is the US 10-year treasury yield that slipped 2 basis points to 2.122% recently.

The US Dollar (USD) on the other hand ignored lesser than expected consumer price index (CPI) as investors rushed to the greenback in search of safety while dovish comments from the European Central Bank (ECB) board member provided additional strength to the momentum.

Looking forward, Australia’s May month employment data could portray election month push to the unemployment rate mark which is likely to slip to 5.1% from 5.2%. However, employment change is likely to soften to 17.5K from 28.4K.

Technical Analysis

Late May month lows around 0.6900 and 0.6860 are flashing on the sellers’ radar unless the pair manages to cross 0.6960. However, 50-day simple moving average (SMA) near 0.7010 could question the pullback then after.

Source: fxstreet


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