AUDUSD Testing the 0.69 Support
The Aussie dollar trades lower for one more day during the Asian trading at 0.6911, after the Australian jobless rate inched higher in May and bolstered July RBA rate cut hopes. President Donald Trump threatened to impose another round of tariffs on Chinese goods if he does not reach a deal with his Chinese counterpart at the G-20 summit later this month. The much anticipated Australia’s unemployment rate remained steady at 5.2% in May, contradicting the market expectation of a drop to 5.1%. The Aussie economy added 42,300 jobs in May, beating both the analyst’s expectation of 17.5K and the previous month’s print of 28.4K by a big margin. Economist’s boosted bets of an RBA rate cut in July, and the yield on the Australian bond yield fell to a record low of 0.992% early Thursday after the higher than expected jobless rate.
Australian dollar failed to capitalize the USD weakness the previous week and rejected at the 50 day moving average at 0.70. As of writing, the pair trades at 0.6911 close to daily low. The pair breached the key hourly moving averages support zone and shorts took the upper hand for one more day. On the downside immediate support stands at 0.69 while the last frontier stands at 0.6860 YTD low. On the upside immediate resistance now stands at the previous support at 0.6943 at the 50 hour moving average while key resistance stands at 0.7011 where the 50 day moving average crosses. The pair looks vulnerable below the 0.70 mark and an attempt to yearly low looks possible.