Weak jobs data add to negative tone; rising 20DMA is key support
The Australian dollar remains in red on Thursday as lower Asian stocks weighed, and weak Australia’s jobs data added to negative tone.
Unemployment rate jumped to the highest in nearly two decades (7.1%) in May and employment fell for a further 227K after 594K slump in April, pointing to the economic damage caused by pandemic.
Fears on the second wave of Covid-19 virus already dented risk sentiment and keep the Aussie at the back foot, with fresh weakness pressuring pivotal support provided by rising 20DMA (0.6821), loss of which would weaken near-term structure and signal possible exit from five-day congestion that would lead to deeper correction of 0.5509/0.7064 ascend.
Extended sideways mode could be expected if the pair continues to trade above 20DMA, but break above 10DMA (0.6922) is needed for bullish signal.
Res: 0.6896; 0.6921; 0.6976; 0.7000
Sup: 0.6821; 0.6776; 0.6715; 0.6697