Aussie Dragged by Downbeat Jobs Report

Obviously, the impacts of the coronavirus pandemic are still lingering, and the Australian dollar should find it difficult to strengthen against the greenback...

FOREX 3

This morning, the Australian dollar weakened against the U.S. dollar following a downbeat jobs report.


Official data showed that Employment in Australia plunged 227,700 in May, much worse than a reduction of 78,800 expected. The Jobless Rate jumped to 7.1% (6.9% expected) from 6.4% in April.



Source: Trading Economics


Obviously, the impacts of the coronavirus pandemic are still lingering.

In fact, market sentiment is seeing renewed drag caused by worries over a second-wave coronavirus pandemic. Authorities of Chinese capital city Beijing ordered the lockdown of residential communities following surging infections. In the U.S., the number of coronavirus cases in Arizona, Florida and Texas reached new highs.

Meanwhile, Qantas Airways, Australia's flag carrier, has canceled all international flights until late October. The decision came after Australian Tourism Minister Simon Birmingham said the country's border for overseas travel would only reopen next year.

The Australian dollar should find it difficult to strengthen against the greenback.

On an Intraday 30-minute Chart, AUD/USD is testing the Immediate support at 0.6835.


Source: GAIN Capital, TradingView


A Key Resistance has been located at 0.6890 (around the 50-period moving average).

The 20-period moving average has just crossed below the 50-period one, helping to keep the intraday bias as bearish.

A break below the immediate support at 0.6835 would open a path toward the next line of support at 0.6795.

Alternatively, a return to the key resistance at 0.6890 would trigger a further advance toward 0.6915 on the upside (around the high of yesterday).

More from Forex

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.