The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Monday, decreasing the price of AUDUSD to less than 0.7550 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 0.7519. A support can be noted around 0.7400, an immediate horizontal support ahead of 0.7350 the psychological number and then 0.7267, another key horizontal support as demonstrated in the given below chart.
On the upside, a hurdle can be noted near 0.8090, an immediate horizontal resistance level ahead of 0.8100, the psychological level and then 0.8249, the high of the last major upside rally 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
U.S. job growth increased less than expected in April and the unemployment rate dropped to near a 17-1/2-year low of 3.9 percent as some out-of-work Americans left the labour force.
Nonfarm payrolls increased by 164,000 jobs last month, the Labor Department reported. Data for March was revised to show the economy adding 135,000 jobs instead of the previously reported 103,000. That was the fewest amount of jobs created in six months and followed an outsized gain of 324,000 in February.
While cold weather in March and April probably held back job growth, hiring is moderating as the labour market hits full employment. Employers, especially in the construction and manufacturing sectors, are increasingly reporting difficulties finding qualified workers.
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.