Following better than expected Australian Employment numbers, but a marginally increasing Unemployment Rate, AUD/USD has plunged past the key 0.9000 level following comments from the RBA’s Stevens.
Overnight, AUD/USD spiked to post a daily high at 0.9081 on better than expected employment data, which saw a significant jump in Employment Change, but a small increase in the Unemployment rate to 5.8% from 5.7%. The spike was short lived, making a low at 0.9010, but spot climbed throughout the European session to post a session high at 0.9067.
However, the RBA’s Stevens has taken to the wires to declare that he feels the currency is overvalued, and wants the currency as low as possible to spur the economy on. Gerry Davies of FXBeat comments, “Australia needs A$ closer to 85 cents, and A$’s natural level is seen as lower than the current rate.” This caused spot to plunge past 0.9000 to post a low at 0.8960. Nevertheless, better than expected US Retail Sales registered alongside a worsening Initial and Continuing Jobless pairing, and spot has found some near time support at 0.8970, down -0.89% on the days trading.
Hourly RSI sits at 22, in oversold territory, with ADX at 38. The hourly 200 SMA sits at 0.9086, sloping lower, with the daily 20 EMA at 0.9176 and bearish. Gerry Davies of FXBeat notes that there are buy orders clustered around 0.8950/60. Today’s central pivot point can be found at 0.9087, with support below at 0.9011 (S1), 0.8969 (S2) and 0.8893 (S3) and resistance at 0.9129 (R1), 0.9205 (R2) and 0.9247 (R3). Dark Cloud Cover, and Engulfing Bearish.Candlestick patterns can be found on the daily chart.