The Australian dollar takes a dump as labor data came out lower than expected. The unemployment rate has hit six percent, the highest rate in nearly a decade. Employment fell 3,700 to 11,466,900, while the participation rate fell by one-tenth percent to 64.5 percent. Analysts seemed to be overly optimistic, looking for an addition of 15,300 jobs with the unemployment. Full-time employment still remains an issue for Australia.
Notice the unemployment rate quickly growing:
Full-time unemployment has been volatile:
The AUDUSD has been stuck at resistance at .9038, and the pair looked promising to hit the 23.6 percent Fibonacci retracement after momentum began to shift prior to the data tonight. The poor employment data is likely to sour AUDUSD’s move up, and a decline to dynamic support levels of the 50- and 20 EMA, at .8951 and .8900, respectively.
A pullback to .9008 is possible, but unlikely until traders begin to digest the data. The RSI has begun to tick lower, and the +/-DMI could result in a bearish crossover if the bearish momentum gains speed.