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AUS Jobs Data Impresses and Boosts AUD/USD

AUS employment data came in better than expected today as we begin the 5/8 global trading session.

Employment Change (Apr): 14.2K
Forecast: 7.5K
March: 21.9K (revised up from 18.1K)

Unemployment Rate (Apr): 5.8%
Forecast: 5.9%
March: 5.8% 


(Source: tradingeconomics.com)

The labor force added fewer jobs than March, but was higher than economists expected. March's reading was also revised up. The unemployment rate remained at 5.8%. As the historic chart shows, the unemployment rate has been in an uptrend the last couple of years, peaking at 6%. The fact the it stabilized at 5.8% in March and April is welcoming, but another month of even lower unemployment rate might be needed to significantly boost the AUD.

Still, AUD/USD for example has been bullish through 2014. April consolidating in April, it looks ready to revive the uptrend in May. I just noted that a break above 0.95 should open up that bullish continuation at least one in the intra-session time-frame: AUD/USD Looks Ready for an Intra-session Rally

This employment data should help AUD/USD revisit the 2014-high around 0.9460.


(audusd 1h chart, 5/8)

Before the 2014-high, the 0.9375 resistance up to the 0.94 handle might pose a challenge to the current bullish attempt. 

After this bullish reaction to a positive AU jobs data, failure to extend would reveal a market that is still in consolidation. If the market breaks back below 0.93, we are looking at a sideways to bearish market, instead of a market that is turning bullish after some consolidation action at the end of April.