AUD/USD bulls not done despite jobs miss

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 17, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    AUD/USD has been a mixed show on the back of the jobs data and a big miss on the headline again. However, the bulls were not phased right away and bids came in that have been met by cautious offers given the dovish FOMC vibes lingering around markets.

    Fed keeps rates unchanged as expected, lowers rate hike expectations

    AUD/USD rallied in the US session after the FOMC outcome that was surprisingly dovish on global economic concerns forcing even the most hawkish members to scale back their optimism and outlook along the dot plot that has been reduced to just two rate hikes this year of 0.5% by the end of 2016. Meanwhile, Australia added 300 jobs in February vs 13,500 expected, which is another big miss.

    Australian Feb employment report: Total jobs disappoint, full time bright spot

    AUD/USD levels

    Technically, the bid through the 200 and 100 sma on the 0.74 handle resulted in stops taking us through the 4hr 20 sma at 0.7501 and some more to the highs of 0.7585 today in Asia. The 0.7600 level is a big level and on this report it looks like we are not going to see anything more towards there for the time being.

    Markets are directionless still on the FOMC and technical levels on the wide are likely to stay on the wide, bringing the focus to the short-term charts. RSI is starting to look stretched on the 1hr sticks at 65, but there is still room to the upside if bulls continue to flex their muscles. 16th June lows at 0.7645 are next target on a break through 0.7620. A sell-off takes us to 20 dma 0.7350, but 0.7531, but 0.7491 and 13th March low will be guarding the downside first.
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