AUD/USD continues to decline on Thursday, approaching the support at 0.6650. Labor market report came out today in Australia, but it did not have any impact on the dynamics of the pair.
Contrary to analysts' expectations, employment fell by 4.3 thousand jobs over the month, while the unemployment rate rose from 3.5% to 3.7%.
The day before, wage data came out in Australia. The index rose 0.8% in the first quarter, which was 0.1% worse than forecast. On an annualized basis the index rose from 3.4% to 3.7% while the forecast was 3.6%. The index has alarmed investors as rapid wage growth will trigger a new round of inflation, which will force the Reserve Bank of Australia to continue its rate hike cycle.
Technical Analysis AUD/USD
Bollinger Bands on the daily chart show weakly pronounced rally while MACD histogram has shifted into negative territory and the indicator shows a sell signal. Stochastic oscillator is flying around the 20% level.
If the pair fixes below 0.6635, we will open short positions with Take Profit at 0.6563. Stop loss is placed at 0.6670.
In case of a rebound from support at 0.6635 we wait for a break-down of resistance at 0.6670 and then buy with a target at 0.6728. Stop-loss in this case is placed at 0.6635.