The Australian Dollar (AUD) inched higher against the US Dollar (USD) on Tuesday, increasing the price of AUDUSD to more than 0.7600 following some key economic releases. The technical bias shall remain bearish because of a lower low in the recent downside move.
AUD/USD Technical Analysis
As of this writing, the pair is being traded around 0.7616. On the upside, a hurdle can be noted near 0.7689, an immediate trendline resistance level ahead of 0.8000, the psychological level and then 0.8249, the high of the last major upside rally as demonstrated in the given below chart.
On the downside, a support can be noted around 0.7512, an immediate trendline support ahead of 0.7500 the psychological number and then 0.7412, the low of last major downside move as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.8024 resistance area is intact.
US Nonfarm Payrolls
The U.S. economy continued to add jobs at a solid clip in May, with nonfarm payrolls up 223,000 and the unemployment rate falling to an 18-year low of 3.8 percent, the Bureau of Labor Statistics reported Friday.
Economists had been expecting payroll growth of 188,000 and the jobless rate to hold steady at 3.9 percent.
The unemployment rate was last this low in April 2000. A separate level of unemployment that adds in discouraged workers and those holding part-time positions for economic reasons fell to 7.6 percent, the lowest since May 2001. A 0.1-point decline in the labor force participation rate to 62.7 percent, tied for the lowest level in 2018, contributed to the headline unemployment rate decline.
The closely watched average hourly earnings metric rose 0.3 percent, as expected. That translates to an annualized rate of 2.7 percent, up 0.1 point from April.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.