Key Points
- Aussie Dollar after an uptrend against the New Zealand dollar found sellers near the 200 hourly simple moving average.
- There was a bullish trend line formed on the hourly chart of AUDNZD, which was broken recently during the downside move.
- Australian Employment Change came in at 7.9K in May 2016, which was released by the Australian Bureau of Statistics.
- The participation rate missed the forecast of 64.9%, and came in at 64.8%.
Technical Analysis
The AUDNZD pair enjoyed a decent recovery, as it traded positively until it found sellers near the 200 hourly simple moving average. The pair started to move down, and also broke a bullish trend line formed on the hourly chart.
The pair is now below the 200, 100 and 50 hourly simple moving averages, which is a sign that more losses are possible in the short term.
On the downside, a test of the last swing low of 1.0413 is possible, followed by 1.0400.
Australian Employment Report
Today, the Australia’s Employment Change, which is a measure of the change in the number of employed people in Australia was released by the Australian Bureau of Statistics. The market was expecting a reading of 15K, but the outcome exceeded the forecast. The Australia’s Employment Change increased by 17.9K.
The report stated that the “seasonally adjusted number of persons employed increased by 17,900 in May 2016. The seasonally adjusted unemployment rate for May 2016 remained unchanged at 5.7 per cent and the seasonally adjusted labour force participation rate was unchanged at 64.8 per cent.”
Overall, the result was not bad, but it failed to draw the attention of the buyers. As a result, the AUDNZD pair may continue to move down.
