Key points:
The Aussie (Symbol: AUDUSD) traded steadily showing little direction as mixed employment data left traders uncertain about the future of interest rates. The Aussie dollar remained at $0.6728, below its recent six-month high of $0.6798. A break of support at $0.6715 could see a retreat to $0.6667.
Picture: AUDUSD price remained flat after mixed jobs report, as observed on the VT Markets app.
Australian data showed a net employment increase of 50,200 in June, surpassing forecasts, but the jobless rate ticked higher to 4.1% as more people entered the labor force.
This mixed data added to the uncertainty around the Reserve Bank of Australia’s (RBA) next move on interest rates. Despite the increase in employment, the rise in unemployment tempered optimism.
The market response was lacklustre, with futures implying only a 20% chance of a rate hike at the next RBA meeting in August.
Concerns about possible US trade curbs on China and selling against a rebounding Japanese yen also weighed on the Australian dollar.
The Aussie shed 2.3% on the yen to 104.64 as market participants cut back on long positions.
For day traders, the mixed job data suggests caution with the Australian dollar as its direction remains uncertain. Monitoring support levels and potential rate hike signals from the RBA will be crucial.
The Aussie presents opportunities for those anticipating rate cuts, with key resistance and support levels to watch. Political and trade developments involving the US and China could also be critical to developing your own trading strategies.
