Audusd rises as us unemployment claims fall, signaling strengthening labor market

AUDUSD Analysis

Performance after Thursday
Period	Pct	Chg	Momentum
Thursday	0.8%	52 Pips
Week to-date	0.56%	37 Pips
July	0.11%	7 Pips

Upcoming key events (London Time)

No major events for the day.

What happened lately

In the United States, the Department of Labor reported a decrease in the Initial Unemployment Insurance Claims for the week ending July 5. The number of claims dropped to 227,000 from a previous 233,000, with the latter figure slightly revised down to 232,000. This decline in unemployment claims points to a strengthening labor market, suggesting that fewer people are losing their jobs and that employment stability is improving. Such data typically indicates economic resilience and a potential increase in spending by employed workers, which may lead to positive sentiments about economic growth prospects.

On Thursday, the AUDUSD exchange rate rose by 0.8% to 0.65870. This movement occurs in the context of declining initial unemployment claims in the U.S., reflecting a robust economy. However, the rise in AUDUSD suggests that the Australian dollar strengthened relative to the U.S. dollar, despite the positive U.S. labor market data. This could be attributed to other dynamics such as shifts in investor sentiment, changes in commodity prices that influence the Australian economy, or technical trading factors in the currency markets. With no major economic events slated for the day, these elements might have contributed to the observed currency movement. The stronger Australian dollar implies confidence or favorable developments in the Australian economic landscape, which outweighs the positive news from the U.S. labor market.

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What can we expect from AUDUSD today?

AUDUSD on Thursday rose 0.8% to 0.65870. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for AUDUSD looks bullish as the pair ended higher after Thursday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 0.66103 with break above could target R2 at 0.66337 or figure level area. While towards the downside, we are looking at daily low of 0.65250 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.65910 may suggest continuation after recent positive movement.

For the week to-date, take note that AUDUSD is mixed as compared to the prior week.

Key levels to watch out:

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