The AUD/USD closed at 0.68521 after placing a high of 0.69023 and a low of 0.68357. Overall the action of AUD/USD pair remained bearish throughout the day. The AUD/USD pair extended its losses for 3rd consecutive day on Thursday on the back of the risk-off market sentiment and sparse than expected employment data from Australia.
At 6:30 GMT, the Employment Change from Australia showed job loss of 2.277M in May against the expected 1.05M job loss. The increased number of people who lost a job in May imposed negative pressure on AUD; hence, pair AUD/USD was dragged down on Thursday.
Furthermore, the Unemployment Rate of Australia for May also surged to 7.1% from the expected 6.9% and weighed on Aussie, which in turn pulled the currency pair AUD/USD on the downside.
The dismal job data was due to the uncomfortable mind of people across the globe related to the second wave of coronavirus infection, along with the increased geopolitical tensions. The risk perceived Aussie prompted some intraday losses in AUD/USD [pair on Thursday. However, a weaker tone surrounding the U.S. dollar helped limit the downfall of the AUD/USD pair.
The poor than expected Unemployment Claims from the U.S. last week as 1.508M against the expected 1.3M, weighed on U.S. dollar.
The escalated tensions over the disputed borders of North & South Korea and China & India caused risk appetite to fade away, which undermined the demand for risk perceived currencies like Aussie, and hence UAD/USD pair came under pressure for 3rd consecutive day on Thursday.
On Friday, the Retail Sales data from Australia and Trade Balance from the U.S. will be key data to watch for UAD/USD pair. Any news on geopolitical tension and China could also affect the pair's movement.
Daily Technical Levels
Pivot point: 0.6865
The AUD/USD is trading at 0.6870, trading mostly sideways within a narrow trading range of 0.6910 - 0.6850. Violation of this could extend the selling trend until 0.6788. While in case of a bullish breakout, the Aussie can go higher to 0.6978 against the U.S. dollar. In both cases, we can have a trade. Let's keep a closer eye on the AUD/USD pair to capture a quick movement in the market. Good luck!