Downbeat Australian jobs data could keep dragging the Aussie lower for the next sessions, and this pullback on EUR/AUD could bring a nice entry opportunity.
Are buyers waiting to go long at these Fib levels?
Before moving on, ICYMI, today’s Daily Asia-London Session Watchlist looked at AUD/CAD’s descending triangle setup. Be sure to check that out to see if there is still a potential play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- Australian economy lost 30.6K jobs in April vs. projected 17.5K gain
- Australia’s jobless rate fell from 5.7% to 5.5% but participation rate down
- BTC takes more hits after volatile run, fears of Chinese regulation return
- Japanese core machinery orders recover by 3.7% vs. projected 5.1% increase
- Japan’s April exports reveal largest jump since 2010, trade surplus at 0.07T JPY
- New Zealand annual budget anticipates lower employment
- Japan extends state of emergency to an additional prefecture
Upcoming Potential Catalysts on the Economic Calendar:
- Canada’s ADP non-farm employment change at 1:30 pm GMT
- U.S. Philly Fed index and initial jobless claims at 1:30 pm GMT
- BOC Governor Macklem’s speech at 4:00 pm GMT
What to Watch: EUR/AUD
This pair recently busted through the ceiling at the 1.5700 mark, then zoomed up to the 1.5800 area before retreating.Can this pullback draw more buyers in?
Using the handy-dandy Fib tool shows that the former resistance lines up with the 50% level while the 61.8% Fib coincides with the 100 SMA dynamic inflection point.
If bulls return at any of these levels, EUR/AUD could set its sights back on the swing high or higher!
Keep in mind that the Land Down Under just printed a dismal headline employment figure for April, as the economy lost 30.6K jobs instead of posting the estimated 20K increase.Although the underlying data reveals a pickup in full-time hiring, the drop in labor force participation and the expiry of the government’s JobSeeker subsidy could weigh on employment prospects.
In addition, risk-off flows stemming from geopolitical tensions in Israel could also drag the higher-yielding Aussie south for the rest of the day.