Aussie drops to one-week low on terrible jobs data, risks further weakness on negative fundamentals
The Australian dollar fell to one-week low (0.6420) in Asia on Thursday after labor data showed monthly job losses rose to a record high (nearly 600K) and unemployment rate rose to 6.2% (the highest since Aug 2015).
Adding to negative tone was diplomatic spat with China after Australian PM called for an international inquiry about the origins of the new coronavirus.
PM Morrison warned for more bad news as pandemic hurt badly the economy had uninterrupted growth for over two decades.
The pair dropped further and cracked support at 0.6431 (20DMA), holding in red for the fourth straight day, following another rejection at falling 100DMA (0.6520) and Wednesday’s eventual close below 10DMA, which held the action in past few days.
South-heading daily momentum, RSI and stochastic add to very negative fundamentals, keeping the outlook bearish.
Break of 20DMA and a higher low at 0.6378 (7 May) would further weaken near-term structure on confirmation of double-top (0.6555/61) and expose targets at 0.6319/01 (Fibo 23.6% of 0.5509/0.6569 / 55DMA).
Daily close below 10DMA is needed to maintain bearish bias.
Res: 0.6453; 0.6475; 0.6500; 0.6520
Sup: 0.6420; 0.6378; 0.6319; 0.6301