AUDNZD Price Analysis: Justifies upbeat Aussie jobs report to aim for 200-DMA hurdle
- AUDNZD grinds higher after bouncing off the previous resistance line.
- Bullish MACD signals, strong Australia employment data for October favor pair buyers.
- Sellers need validation from 1.0880 to aim for late April’s low.
AUDNZD remains on the front foot around 1.0970-75 while cheering firmer prints of Australian employment statistics on early Thursday. In doing so, the cross-currency pair also defends the previous day’s rebound from the resistance-turned-support.
Australia’s Employment Change jumped by 32.2K versus 15K market forecasts and 0.9K prior whereas the Unemployment Rate dropped to 3.4% from 3.5% previous readings and 3.6% expected.
Given the bullish MACD signals and the pairs’ sustained break of a seven-week-old descending trend line, not to forget the latest economics from Australia, the AUDNZD pair is likely to remain firmer.
However, the 200-DMA level surrounding 1.1015 appears a tough nut to crack for the AUDNZD bulls.
Following that, a run-up towards the 61.8% Fibonacci retracement level of the pair’s April-September upside, near 1.1080, can’t be ruled out.
On the contrary, pullback moves need to provide a daily closing below the previous resistance line, around 1.0920 by the press time, to convince sellers.
Even so, a horizontal area comprising multiple levels marked since late April, around 1.0880, could challenge the AUDNZD bears before directing them to the April 25 low of 1.0824.
AUDNZD: Daily chart
Trend: Further recovery expected